AUD/USD Elliott Wave
Last week the AUD/USD pair was trading upwards, impulsive wave (3) (coloured green) of the corrective wave A (coloured red) was developing. During the Friday's Asian session we could observe descending movement toward the 1.0360 level and we can consider this movement as the end of the sub-wave (A) (coloured pink) of the bigger 4 wave (coloured blue). Therefore, during the European and New York sessions this major currency did not manage to hold bearish mood and the price pushed to the new weekly high at 1.0413 level. We can consider this movement as the end of the sub-wave (B) (coloured pink). Today during the Asian session the AUD/USD pair has finished development of final sub-wave (C) of the 4 wave and we expect to see the price around 1.0510 level in the next few sessions. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0510 (161.8% of wave 1). To reduce the risk, we can use support at 1.0340 level as stop loss.
Support and Resistance
(S3) 1.0323 (S2) 1.0341 (S1) 1.0376 (PP) 1.0394 (R1) 1.0429 (R2) 1.0447 (R3) 1.0482
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0380 with stop loss 1.0340 and take profit at 1.0510 are recommended.
