AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, just like we expected, corrective wave 2 (coloured blue) of the bigger wave [3] (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9393 towards the 0.9460 level. Therefore, during the New York session this currency pair has continued bullish trend and the price has reached a new daily high at the 0.9481 level. We can consider this move as the end of the wave 2 (coloured blue). At the moment the AUD/USD pair is trading around 0.9355 level and we expect to see the price lower in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9197 (161.8% of wave 3). To reduce the risk, we can use resistance point at 0.9481 level as stop loss.
Support and Resistance
(S3) 0.9323 (S2) 0.9358 (S1) 0.9410 (PP) 0.9445 (R1) 0.9497 (R2) 0.9532 (R3) 0.9584
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9310 with stop loss at 0.9481 and take profit at 0.9197 are recommended.
