AUD/USD Elliott Wave
For the last few years the AUD/USD pair has been trading in a side-ways movement, from technical perspective this move looks like a triangle pattern. If you look at the Weekly chart you can see that we are currently in the final sub-waves E (coloured blue) of the bigger wave 4 (coloured green) and we expect to see the price pushing higher when development of the 5 wave starts. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.1770 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9595 level as stop loss.
Support and Resistance
(S3) 0.9890 (S2) 0.9941 (S1) 0.9973 (PP) 1.0025 (R1) 1.0076 (R2) 1.0108 (R3) 1.0160
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0240 with stop loss at 1.0116 and take profit at 1.0300 are recommended.
