AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, corrective wave Y (coloured blue) of the bigger wave [4] (coloured red) has been developing. During the Tuesdays Asian session we could observe ascending movement from 0.9119 towards the 0.9197 level. Therefore, during the European and New York session this major currency did not manage to hold this levels and the price has traded in a sideways move between 0.9134 and 0.9197 area. At the moment, the AUD/USD pair is trading around 0.9208 and we are expecting to see price lower when developing of the wave [5] (coloured red) starts.n 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 0.8855 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9300 level as stop loss.
Support and Resistance
(S3) 0.8987 (S2) 0.9035 (S1) 0.9105 (PP) 0.9153 (R1) 0.9223 (R2) 0.9271 (R3) 0.9341
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9140 with stop loss at 0.9300 and take profit at 0.8855 are recommended.
