AUD/USD Elliott Wave
Last week the AUD/USD pair was trading in a downward move, impulsive wave (1) (coloured green) of the bigger (C) wave (coloured red) was developing. During the Monday’s Asian and European sessions we could observe ascending movement from 1.0408 toward the 1.0441 level. Therefore, during the early New York session this commodity pair continued trading in a bullish mood and the price reached a new daily high at 1.0457 level. We can consider this move as the end of the (C) wave (coloured pink) of the bigger 4 wave (coloured blue). At the moment the AUD/USD pair is trading around 1.0401 level and we expect to see the price around 1.03400 level when development of the 4 wave ends. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0337 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0485 level as stop loss.
Support and Resistance
(S3) 1.0396 (S2) 1.0409 (S1) 1.0417 (PP) 1.0429 (R1) 1.0442 (R2) 1.0450 (R3) 1.0462
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0440 with stop loss 1.0485 and take profit at 1.0337 are recommended.
