AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair was trading downwards, just like we expected, corrective wave A (coloured blue) of the bigger wave (4) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0447 towards 1.0496 level and we can consider this move as the end of the sub-waves 5 (coloured blue) of the wave (3) (coloured green). Therefore, during the New York session when development of the corrective wave (4) had started this currency dropped to 1.0460 area. At the moment the AUD/USD pair is trading around 1.0453 and we expect to see the price below 1.0385 in the next few sessions. 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 1.0383 (38.2% of wave 3). To reduce the risk, we can use resistance at 1.0500 as stop loss.
Support and Resistance
(S3) 1.0457 (S2) 1.0461 (S1) 1.0466 (PP) 1.0470 (R1) 1.0475 (R2) 1.0479 (R3) 1.0484
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0445 with stop loss 1.0500 and take profit at 1.0383 are recommended.
