AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, corrective wave 4 (coloured blue) of the bigger wave [3] (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9250 towards the 0.9147 level and we can consider this move as the end of the sub-wave 5 of the impulsive wave 3 (coloured blue). Therefore, during the early New York session this major currency did not manage to hold this levels and the price has retraced back to 0.9298 level. At the moment the AUD/USD pair is trading around 0.9255 area 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 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9023 (61.8% of wave 3). To reduce the risk, we can use resistance point at 0.9433 level as stop loss.
Support and Resistance
(S3) 0.9016 (S2) 0.9081 (S1) 0.9167 (PP) 0.9232 (R1) 0.9318 (R2) 0.9383 (R3) 0.9469
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9195 with stop loss at 0.9433 and take profit at 0.9023 are recommended.
