AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading upwards, so we changed our primary wave count a little bit, but we are still favoring the bearish scenario. Yesterday, during the Asian session we could observed descending movement from 0.9122 towards the 0.9035 level and we can consider this move as the end of the sub-wave b (coloured green) of the wave 2 (coloured blue).Therefore, during the New York session this major currency did not manage to hold this levels and price has retraced back to 0.9196 level. At the moment the AUD/USD pair is trading around 0.9175 and we expect to see the price lower when development of the wave 3 (coloured blue) starts. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.8669 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 0.9300 level as stop loss.
Support and Resistance
(S3) 0.8962 (S2) 0.8998 (S1) 0.9048 (PP) 0.9084 (R1) 0.9134 (R2) 0.9170 (R3) 0.9220
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9130 with stop loss at 0.9300 and take profit at 0.8869 are recommended.
