AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, so we have changed our primary wave count a little bit. Yesterday, during the Asian and European sessions, we could observe a strong descending movement from 0.9466 towards the 0.9325 level and we can consider this move as the end of the impulsive wave [i] (coloured red) of the bigger wave 3 (coloured green). Therefore, during the early New York session this major currency did not manage to hold this level and price has retraced back to 0.9553 level. At the moment, the AUD/USD pair is developing the final sub-wave C (coloured blue) of the wave [ii] (coloured red) and we are expecting 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 0.9050 (161.8% of wave 3). To reduce the risk, we can use resistance point at 0.9672 level as stop loss.
Support and Resistance
(S3) 0.9203 (S2) 0.9264 (S1) 0.9348 (PP) 0.9409 (R1) 0.9493 (R2) 0.9554 (R3) 0.9638.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9530 with stop loss at 0.0672 and take profit at 0.9050 are recommended.
