AUDUSD Elliott Wave
Since our last analysis the AUD/USD pair has been trading upwards, corrective wave .2 (coloured green) of the bigger wave 1 (coloured blue) has been developing. Yesterday during the Asian and European sessions we could observe strong ascending movement from 0.9140 towards the 0.9228 level. Therefore, during the New York session this major pair has continued trading in a bullish mood and the price has reached a new high at 0.9279 level. At the moment the AUD/USD pair is trading around 0.9261 and all the way price stays below 0.9317 we are expecting to see price lower for the end of the wave (5) (coloured green). 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 invalidation point at 0.9317 level as stop loss.
Alternate Count: If price goes above the ending point of the wave (4) (coloured green) we need to consider this wave as incomplete, and in this case we could expect to see price stay in a bullish mood for the few more weeks.
Support and Resistance
(S3) 0.9000 (S2) 0.9064 (S1) 0.9153 (PP) 0.9217 (R1) 0.9306 (R2) 0.9370 (R3) 0.9459
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 0.9317 and take profit at 0.8486 are recommended.
