AUD/USD Elliott Wave
Since out last analysis the AUD/USD pair has been trading downwards, just like we expected, falling wedge was developing in that period that confirm possible bullish move very soon. During yesterday's Asian and European sessions we could observe descending movement from 1.0306 towards the 1.0235 level and we can consider this move as the end of the sub-wave 3 of the final wave 5 (coloured blue). Therefore, during the early New York session this major currency did not manage to hold this level and the price has retraced back to 1.0237 area. At the moment the AUD/USD pair is trading around 1.0230 and we expect to see the price higher for the next few trading sessions. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0400 (50% of wave A). To reduce the risk, we can use invalidation point at 1.0175 level as stop loss.
Support and Resistance
(S3) 1.0164 (S2) 1.0200 (S1) 1.0236 (PP) 1.0272 (R1) 1.0308 (R2) 1.0344 (R3) 1.0380
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0250 with stop loss at 1.0175 and take profit at 1.0400 are recommended.
