AUD/USD Elliott Wave
For the last three days 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 second half of the Asian and European sessions we could observe descending movement from 1.0439 towards the 1.0395 level and we can consider this movement as the end of the wave A (coloured blue). Therefore, during the early New York session this currency did not manage to hold this level and price has retraced back to 1.0425 area. At the moment the AUD/USD pair is trading around 1.0415 level and we expect to see the price at 1.0460 in the next few trading sessions. In accordance with our wave rules and taking into account that the wave B should retrace 61.8% of the waves A, we can define the potential targets with measuring wave A with take profit at 1.0460 (61.8% of wave A). To reduce the risk, we can use support at 1.0398 as stop loss.
Support and Resistance
(S3) 1.0360 (S2) 1.0383 (S1) 1.0397 (PP) 1.0420 (R1) 1.0443 (R2) 1.0457 (R3) 1.0480
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0420 with stop loss 1.0398 and take profit at 1.0460 are recommended.
