AUD/USD Elliott Wave
For the last three days the AUD/USD pair was trading downwards, in Elliott perspective corrective wave (A) (coloured green) of the bigger wave 2 (coloured purple) was developing. During the Friday's Asian and European sessions we could observe descending movement from 1.0560 towards the 1.0510 level. Therefore, during the New York session this major currency has continued trading in a bearish mood and the price has reached a new low at 1.0479 area. At the moment the AUD/USD pair is trading around 1.0423 and we expect to see the price around 1.0300 area till the end of this week. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0295 (61.8% of wave 1). To reduce the risk, we can use resistance point at 1.0522 level as stop loss.
Support and Resistance
(S3) 1.0433 (S2) 1.0464 (S1) 1.0483 (PP) 1.0514 (R1) 1.0545 (R2) 1.0564 (R3) 1.0595
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0400 with stop loss at 1.0522 and take profit at 1.0295 are recommended.
