AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, just like we expected, impulsive wave 3 (coloured green) of the bigger wave C (coloured blue) has been developing. During the Wednesday's Asian and European sessions we could observe strong ascending movement from 0.9190 towards the 0.9291 level and we can consider this move as the end of the wave 3 (coloured green). Therefore, during the New York session this major currency did not manage to hold this levels and the price has dropped to 0.9170 level. At the moment the AUD/USD pair is trading around 0.9173 and we expect to see the price higher when development of the final wave 5 of the B wave 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 0.9315 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9120 level as stop loss.
Support and Resistance
(S3) 0.9087 (S2) 0.9139 (S1) 0.9188 (PP) 0.9240 (R1) 0.9289 (R2) 0.9341 (R3) 0.9390
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9180 with stop loss at 0.9120 and take profit at 0.9315 are recommended.
