AUD/USD Elliott Wave
For the last couple of days the AUD/USD pair has been trading upwards, impulsive sub-wave .5 (coloured green) of the wave C (coloured blue) has been developing.Yesterday during the early Asian session we could observe descending movement from 0.9279 towards the 0.9225 level.Therefore, during the Asian and New York sessions this major currency did not manage to hold this levels and the price has retraced to 0.9318 region. We can consider this move as the end of the corrective wave C (coloured blue). At the moment the AUD/USD pair is trading around 0.9255 and we expect to see the price lower for the next few days. 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 0.8486 (61.8% of wave 3). To reduce the risk, we can use resistance point at 0.9400 level as stop loss.
Support and Resistance
(S3) 0.9169 (S2) 0.9196 (S1) 0.9245 (PP) 0.9272 (R1) 0.9321 (R2) 0.9348 (R3) 0.9397
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9200 with stop loss at 0.9400 and take profit at 0.8486 are recommended.
