AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has continued trading higher, just like we expected, corrective wave C (coloured blue) of the bigger wave (B) (coloured green) has been developing. During the Tuesday's European session we could observe descending movement from 1.0371 towards the 1.0329 level. Therefore, during the New York session this major pair did not manage to hold this levels and price has reached a new high at 1.0384 level. We can consider this movement as the end of the corrective wave C (coloured blue). At the moment the AUD/USD pair is trading around 1.0348 area and we are expecting to see price around 1.0300 area very soon. In accordance with our wave rules and taking into account that wave 5 should retrace 100% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0300 (100% of wave 1). To reduce the risk, we can use invalidation point at 1.0381 level as stop loss.
Support and Resistance
(S3) 1.0281 (S2) 1.0305 (S1) 1.0337 (PP) 1.0361 (R1) 1.0393 (R2) 1.0417 (R3) 1.0449
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why long positions at level 1.0350 with stop loss at 1.0381 and take profit at 1.0300 are recommended.
