AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair was trading downwards, corrective sub-wave wave A (coloured blue) of the wave (4) (coloured green) has finished its development. During the Wednesday's Asian and European sessions we could observe strong descending movement from 1.0476 towards the 1.0417 level and we can consider this move as the end of the sub-wave 3 of wave A (coloured blue). Therefore, during the late New York session when this currency finished development of the sub-wave 4 we could observe continuation of the bearish mood that pushed price to 1.0415 level (end of the wave A). At the moment the AUD/USD pair is trading around 1.0428 and we expect to see the price above 1.0460 before price continued to trade lower. In accordance with our wave rules and taking into account that 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) 1.0381 (S2) 1.0406 (S1) 1.0422 (PP) 1.0448 (R1) 1.0473 (R2) 1.0489 (R3) 1.0515
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0460 with stop loss 1.0500 and take profit at 1.0383 are recommended.
