That’s an interesting chart @Gladitrader you will have to explain those converging lines. My apologies for having left this post in mid-air - my attention moved on to other instruments, but here is a quick wrap up of what happened in the Aussie (in my opinion).
An hour and a half after my previous post:
Price was repelled lower by the 1-day VTL, and crossed below the 5-hour VTL (the white line), thereby confirming that the 1-day peak was in place … that peak had already been placed there by the analysis indicator, on the bar at which the 1-day upside target was reached. Price then crossed below the 1-day FLD - look out for those VTL and FLD combos, they are often powerful. Then an hour and a half later the 1-day FLD target was reached.
Notice the 5-day and 2-day trough circles - as mentioned earlier I am expecting a 10-day cycle trough here, and we are right in the zone for that trough …
Let’s jump ahead a few hours:
Price dropped lower following the acquiring of the 1-day FLD target … there is definitely bearish pressure (which is no surprise given that the 80-day cycle might have peaked), and look at how it is kept down by the 5-hour VTL (white line), and makes a double-bottom. We are looking for a trough here, but it is late on Friday and so the market begins to drift into the weekend.
Jumping ahead to the end of trading on Friday:
The double-bottom held and price crossed above the 5-hour VTL, confirming the 1-day trough, and perhaps the 10-day trough that we have been expecting. Is that the 10-day trough? I like to step back to the H4 chart to reassess:
There you can see the bounce off the 10-day FLD, and then price has come back to the 10-day FLD and slipped a little below it. It is possible that price will form the 10.day trough here, but I actually think that it is more likely that we will look back and place that 10-day trough at the bounce we followed this morning. After all, if the 80-day peak is in place the overwhelming pressure is bearish, and a 10-day trough is likely to give us a very subtle bounce, such as we witnessed today.
Price might well track up with the 10-day FLD a little, but I would be looking for it to resolve to the downside and head down to the 10-day FLD target.
I hope you find this useful … Hurst cycles provide us with a great way of understanding the way price moves, like a constantly unfolding story.