AUDUSD Elliott Wave
Since our last analyses the AUD/USD pair has been trading downwards, just like we expected, impulsive wave .3 (coloured green) of the bigger wave 1 (coloured blue) has been developing. During the Monday's Asian and European sessions we could observe descending movement from 0.9284 towards the 0.9187 level. Therefore, during the New York session this major currency has continued trading in a bullish mood and the price has made a new low at 0.9154 level. At the moment the AUD/USD pair is trading around 0.9072 and we expect to see the price staying in a bearish mood for the few more days. 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 0.8980 (161.8% of wave 1). To reduce the risk, we can use resistance point at 0.9185 level as stop loss.
Support and Resistance
(S3) 0.9067 (S2) 0.9127 (S1) 0.9166 (PP) 0.9226 (R1) 0.9265 (R2) 0.9325 (R3) 0.9364
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9060 with stop loss at 0.9185 and take profit at 0.8980 are recommended.
