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AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading downside, so we need to change our wave count, impulsive wave (5) (coloured pink) of the bigger wave 1 (coloured blue) was developing. During the Monday's Asian session we could observe ascending movement from 1.0384 towards the 1.0415 level and we can consider this move as the end of the wave (4) of the bigger wave (5) (coloured pink). Therefore, during the European and New York session the AUD/USD pair started pushing lower reaching a new low at 1.0356 level. We can consider this movement as the end of the impulsive wave (5) of the bigger wave (5). Tomorrow we are expecting to see price higher when development of the corrective wave 2 starts. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0480 (61.8% of wave 1). To reduce the risk, we can use invalidation at 1.0357 level as stop loss.
Support and Resistance
(S3) 1.0279 (S2) 1.0336 (S1) 1.0371 (PP) 1.0428 (R1) 1.0463 (R2) 1.0520 (R3) 1.0555
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0370 with stop loss 1.0357 and take profit at 1.0480 are recommended.
