AUDUSD Elliott Wave
Since our last analyses the AUD/USD pair has continued trading in a bearish mood, we can consider this move as the reaction in the impulsive .3 wave (coloured green) of the bigger wave 1 (coloured blue). During the Wednesday's Asian and European sessions we could observe descending movement from 0.9075 towards the 0.8940 level. Therefore, during the New York session this major currency has continued trading downwards and the price has reached a new low at 0.8925 level. We can consider this move as possible end of the wave .3 (coloured green). At the moment the AUD/USD pair is trading around 0.8970 and we expect to see one more push higher before price turn around when development of the .5 wave starts. 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 0.9067 (38.2% of wave 3). To reduce the risk, we can use invalidation point at 0.8925 level as stop loss.
Support and Resistance
(S3) 0.8780 (S2) 0.8858 (S1) 0.8920 (PP) 0.8998 (R1) 0.9060 (R2) 0.9138 (R3) 0.9200
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.8985 with stop loss at 0.8925 and take profit at 0.9067 are recommended.
