AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading upwards, impulsive wave (5) (coloured green), of the bigger wave 1 (coloured red) was developing. Yesterday, during the European session we could observe strong ascending movement from 1.0500 towards the 1.0581 level and we can consider this move as the end of the sub-wave 3 (coloured blue) of the (5) wave (coloured green). Therefore, during the early New York session this major currency did not manage to hold this level and the price has retraced back to 1.0549 level. At the moment the AUD/USD pair is trading around 1.0542 and we expect to see another bullish movement when development of 4 wave (coloured blue) ends. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0624 (61.8% of wave 3). To reduce the risk, we can use support point at 1.0480 level as stop loss.
Support and Resistance
(S3) 1.0420 (S2) 1.0460 (S1) 1.0502 (PP) 1.0542 (R1) 1.0584 (R2) 1.0624 (R3) 1.0666
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0500 with stop loss at 1.0480 and take profit at 1.0624 are recommended.
