AUDUSD Elliott Wave
For the last few days the AUD/USD pair has been trading downwards, impulsive wave .3 (coloured green) of the bigger wave 1 (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9187 towards the 0.9075 level. Therefore, during the New York session this major currency has continued trading in a bearish mood and the price has reached a new daily low at 0.9044 level. Today the AUD/USD pair is trading around 0.9020 level and we expect to see the end of the impulsive wave .3 very soon. In accordance with our wave rules and taking into account that wave 4 should retrace 38.2% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9104 (38.2% of wave 3). To reduce the risk, we can use support point at 0.8960 level as stop loss.
Support and Resistance
(S3) 0.8835 (S2) 0.8939 (S1) 0.9002 (PP) 0.9106 (R1) 0.9169 (R2) 0.9273 (R3) 0.9336
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.8990 with stop loss at 0.8960 and take profit at 0.9104 are recommended.
