AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading upwards, just like we expected, impulsive wave 3 (coloured blue) of the bigger (3) wave (coloured green) was developing. Yesterday, during the European session we could observe ascending movement from 1.0336 towards the 1.0400 level and we can consider this movement as the end of the (5) wave (coloured pink) of the bigger 4 wave (coloured blue). Therefore, during the New York session this currency did not manage to hold this level and the price dropped to 1.0363 level. We can consider this move as the end of the sub-wave (A) (coloured pink) of the 4 wave (coloured blue). At the moment the AUD/USD pair is trading around 1.0373 level and we expect to see the price around 1.0345 level in this session. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0355 (38.2% of wave 3). To reduce the risk, we can use resistance at 1.0400 level as stop loss.
Support and Resistance
(S3) 1.0199 (S2) 1.0243 (S1) 1.0313 (PP) 1.0357 (R1) 1.0427 (R2) 1.0471 (R3) 1.0541
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0375 with stop loss 1.0355 and take profit at 1.0400 are recommended.
