AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading downwards, corrective wave B (coloured green) of the bigger wave (4) (coloured blue) has been developing. During the Friday's Asian and European sessions we could observe strong descending movement from 0.9683 towards the 0.9565 level. Therefore, during the early New York session this major currency has continued trading in a bearish mood and the price has reached a new 2-day low at 0.9547 level. We can consider this move as the end of the corrective wave B (coloured green) of the bigger wave (4) (coloured blue). At the moment the AUD/USD pair is trading around 0.9638 level and we expect to see the price higher in the next few days. In accordance with our wave rules and taking into account that wave 4 should retrace 38.2% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9777 (38.2% of wave 3). To reduce the risk, we can use support point at 0.9540 level as stop loss.
Support and Resistance
(S3) 0.9466 (S2) 0.9518 (S1) 0.9550 (PP) 0.9602 (R1) 0.9654 (R2) 0.9686 (R3) 0.9738
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9650 with stop loss at 0.9540 and take profit at 0.9777 are recommended.
