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AUD/USD Elliott Wave
For the last few days the AUD/USD pair was trading slightly upwards, and corrective wave A (coloured blue) of the bigger wave (2) (coloured green) was developing. Yesterday during the European session we could observe descending movement from 1.0388 towards the 1.0347 level and we can consider this move as the end of the wave B (coloured blue). Therefore, during the New York session the AUD/USD pair did not manage to hold this level, and price retraced back to 1.0382. At the moment this major pair is trading around 1.0380 level, and we expect price to reach 1.0420 level today. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0419 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0344 level as stop loss.
Support and Resistance
(S3) 1.0328 (S2) 1.0344 (S1) 1.0354 (PP) 1.0370 (R1) 1.0386 (R2) 1.0396 (R3) 1.0412
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0385 with stop loss 1.0344 and take profit at 1.0419 are recommended.
