AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading downwards, just like we expected, impulsive wave 1 (coloured blue) of the bigger wave [3] (coloured red) has been developing.Yesterday, during the European session we could observe ascending movement from 0.9416 towards the 0.9562 level, and we can consider this move as the end of the corrective wave [2] (coloured red). Therefore, during the New York session this major currency did not manage to hold this levels and the price dropped to 0.9464 level (session low). At the moment the AUD/USD pair is trading around 0.9517 area and we expect to see the price lower when development of the wave 3 (coloured blue) starts. 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 0.9308 (161.8% of wave 3). To reduce the risk, we can use resistance point at 0.9561level as stop loss.
Support and Resistance
(S3) 0.9263 (S2) 0.9339 (S1) 0.9411 (PP) 0.9487 (R1) 0.9559 (R2) 0.9635 (R3) 0.9707
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9500 with stop loss at 0.9561 and take profit at 0.9308 are recommended.
