AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading upwards, corrective wave A (coloured blue) of the bigger wave (B) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0271 towards the 1.0338 level and we can consider this move as the end of the sub-wave A (coloured blue). Therefore, during the New York session when development of the sub-wave B started, this major currency has started to push lower and the price reached a new session’s low at 1.0284 level. At the moment the AUD/USD pair is trading around 1.0278 area and we expect to see another move higher when development of the wave C starts. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0399 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0220 level as stop loss.
Support and Resistance
(S3) 1.0194 (S2) 1.0233 (S1) 1.0261 (PP) 1.0300 (R1) 1.0328 (R2) 1.0367 (R3) 1.0395
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0290 with stop loss at 1.0220 and take profit at 1.0399 are recommended.
