AUD/USD Elliott Wave
Last week the AUD/USD pair has been trading downwards, just like we expected, impulsive wave 5 (coloured blue) of the bigger wave [3] (coloured red) has been developing. During the Friday's Asian and European session we could observe strong descending movement from 0.9282 towards the 0.9150 level.Therefore, during the New York session this currency has continued trading in a bearish mood and price has reached a new low at 0.91111 level. A the moment the AUD/USD pair is developing corrective wave .4 (coloured green) of the bigger wave 5 (coloured blue), and we are expecting to see price lower when developing of the wave .5 starts. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9057 (61.8% of wave 1). To reduce the risk, we can use invalidation point at 0.9285 level as stop loss.
Support and resistance
(S3) 0.8899 (S2) 0.9005 (S1) 0.9073 (PP) 0.9179 (R1) 0.9247 (R2) 0.9353 (R3) 0.9421
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9170 with stop loss at 0.9285 and take profit at 0.9057 are recommended.
