AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, just as we expected, corrective wave Y (coloured blue) of the bigger wave [4] (coloured red) has been developing. Yesterday, during the Asian session we could observe strong ascending movement from 0.9042 towards the 0.9100 level. Therefore, during the New York session this currency has continued to trade in a bullish mood and price has reached a new highs at 0.9143 level. Today, during the London session we could observe strong push higher to 0.9197 level (end of wave Y) and we are expecting to see price lower when developing of the wave [5] (coloured red) starts. 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 0.8799 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9335 level as stop loss.
Support and Resistance
(S3) 0.9134 (S2) 0.9152 (S1) 0.9162 (PP) 0.9180 (R1) 0.9190 (R2) 0.9208 (R3) 0.9218
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9100 with stop loss at 0.9335 and take profit at 0.8799 are recommended.
