AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading upwards, we are tracking this move as potential wave 3 (coloured green) of the bigger wave C (coloured blue). Yesterday, during the Asian and European sessions we could observe ascending movement from 09167 towards the 0.9260 level and we can consider this move as the end of the impulsive wave 3 (coloured green). Therefore, during the New York session when development of the 4 wave started this major currency has dropped below 0.9220 level. At the moment the AUD/USD pair is trading around 0.9200 and we expect to the price higher when development of wave 5 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 0.9328 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9118 level as stop loss.
Support and Resistance
(S3) 0.8962 (S2) 0.9024 (S1) 0.9137 (PP) 0.9199 (R1) 0.9312 (R2) 0.9374 (R3) 0.9487
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9210 with stop loss at 0.9118 and take profit at 0.9328 are recommended.
