EUR/AUD Elliott Wave
Since our last analyses the EUR/AUD pair was trading downwards, corrective wave 2 (coloured blue) of the bigger wave (5) (coloured green) was developing. Yesterday during the early Asian session we could observe ascending movement from 1.2939 towards the 1.2994 level and we can consider this movement as the end of the wave 1 (coloured blue). Therefore, during the European and New York sessions this currency did not manage to hold this level and the price retraced back to 1.2914 level. At the moment the EUR/AUD pair is trading around 1.2910 level and we expect to see the price higher when development of the impulsive 3 wave (coloiured blue) starts. 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 1.3131 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.2866 level as stop loss.
Support and Resistance
(S3) 1.2900 (S2) 1.2923 (S1) 1.2937 (PP) 1.2960 (R1) 1.2983 (R2) 1.2997 (R3) 1.3020
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.2925 with stop loss 1.2866 and take profit at 1.3131 are recommended.
