AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading downwards, impulsive wave 5 (coloured blue) of the bigger wave (A) (coloured green) has finished its development. Yesterday, during the Asian session we could observe strong descending movement from 1.0275 towards the 1.0220 level and we can consider this move as the end of wave (A) (coloured green). Therefore, during the European and New York sessions this major currency did not manage to hold this level and the price has retraced back to 1.0271 area. At the moment the AUD/USD pair is trading around 1.287 and we expect to see the price above 1.0400 in the next few 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 1.0220 level as stop loss.
Support and Resistance
(S3) 1.0173 (S2) 1.0197 (S1) 1.0228 (PP) 1.0252 (R1) 1.0283 (R2) 1.0307 (R3) 1.0338
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0300 with stop loss at 1.0220 and take profit at 1.0400 are recommended.
