AUD/USD Elliott Wave
For the last three days 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 Wednesday's Asian and European session we could observe descending movement from 0.9233 towards the 0.9018 level and we can consider this move as the end of the corrective sub-wave .B (coloured green) of the Y wave. Therefore, during the New York session this major currency pair did not mange to stay in the bearish mood and price has retraced back to 0.9297 level. At the moment, the AUD/USD pair is trading around 0.9230 level and we are expecting to see price lower for the end of the final wave [5] (coloured red). 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 0.8905 (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) 0.8952 (S2) 0.9021 (S1) 0.9095 (PP) 0.9164 (R1) 0.9238 (R2) 0.9307 (R3) 0.9381
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9200 with stop loss at 0.9300 and take profit at 0.8855 are recommended.
