AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading downwards, corrective wave (A) (coloured green) of the bigger wave 2 (coloured purple) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0268 towards the 1.0337 level and this move only confirms our primary count. Therefore, during the New York session this currency did not manage to hold this level and the price has retraced back to 1.0280 level. At the moment the AUD/USD pair is trading around 1.0350 area and we expect to see the price above 1.0460 level very soon. In accordance with our wave rules and taking into account that wave B should retrace 61.8% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0462 (61.8% of wave A). To reduce the risk, we can use invalidation point at 1.0310 level as stop loss.
Support and Resistance
(S3) 1.0197 (S2) 1.0233 (S1) 1.0265 (PP) 1.0301 (R1) 1.0333 (R2) 1.0369 (R3) 1.0401
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0360 with stop loss at 1.0310 and take profit at 1.0462 are recommended.
