AUD/USD Elliott Wave
Last week the AUD/USD pair was trading downwards, corrective wave C (coloured blue) of the bigger wave (4) (coloured green) was developing. During the Friday's Asian and European sessions we could observe descending movement from 1.0436 towards 1.0353 level. Therefore, during the early New York session this currency did not manage to hold bearish mood and the price has retraced back to 1.0400 area. Today the AUD/USD pair hit a new low at 1.0347 level and we think that this is the end of the corrective wave (4) (coloured green), so we may see price higher this week. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0525 (61.8% of wave 3). To reduce the risk, we can use support at 1.0335 as stop loss.
Support and Resistance
(S3) 1.0267 (S2) 1.0311 (S1) 1.0350 (PP) 1.0394 (R1) 1.0433 (R2) 1.0477 (R3) 1.0516
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0400 with stop loss 1.0335 and take profit at 1.0525 are recommended.
