AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has finished development of the 5 impulsive wave (coloured blue) of the bigger wave (1) (coloured green) just like we expect and development of the wave (2) (coloured green) starts. Yesterday during the Asian and European sessions we could observe descending movement from 1.0356 towards the 1.02956 level and we can consider this move as the end of the wave (1). Therefore, during the New York session this major pair did not manage to hold this level and the price started pushing higher reaching a new sessions high at 1.0331 level. At the moment the AUD/USD pair is trading in (3) impulsive wave (coloured pink) and we expect continuation of the bullish mood 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 1.0375 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0296 level as stop loss.
Support and Resistance
(S3) 1.0234 (S2) 1.0274 (S1) 1.0299 (PP) 1.0338 (R1) 1.0378 (R2) 1.0403 (R3) 1.0442
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0335 with stop loss 1.0296 and take profit at 1.0375 are recommended.
