AUD/USD Elliott Wave
For the last few days the AUD/USD pair was trading downwards, impulsive blue wave 1 of the bigger wave (3) coloured green was developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0264 towards the 1.0220 level . Therefore, during the early New York session this currency pair did not manage to hold this level, and the price reached 1.0322. We can consider this movement as the end of the wave 2 (coloured blue). At the moment, the AUD/USD pair is trading around 1.0305, and we are expecting to see the price below 1.0100 soon.In accordance with our wave rules and taking into account the fact that the wave 3 should retrace 161.8% of the wave 1, we can define potential targets measuring wave 1 with take profit at 1.0093 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0367 as stop loss.
Support and resistance
(S3) 1.0179 (S2) 1.0200 (S1) 1.0223 (PP) 1.0244 (R1) 1.0267 (R2) 1.0288 (R3) 1.0311
Trading forecast
Proceeding from the Elliott Wave rules today, the trend is expected to take the downward direction. That is why short positions at 1.0340 with stop loss 1.0367 and take profit at 1.0093 are recommended.
