AUDUSD Elliott Wave
Since our last analysis the AUD/USD pair has been trading upwards, the corrective wave iv (coloured blue) of the bigger wave (5) (coloured green) has been developing. During the Wednesday's Asian session we could observe descending movement from 0.9002 towards 0.8918 level and we could consider this move as the end of the corrective wave .X (coloured green). Therefore, during the European and New York sessions this major currency did not manage to keep the bearish moods and the price retraced to 0.9035 level. At the moment, the AUD/USD pair is trading around 0.9071 and we are expecting to see the end of wave 4 very soon. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define potential targets with measuring wave 3 with take profit at 0.8813 (61.8% of wave 3). To reduce the risk, we can use resistance point at 0.9130 level as stop loss.
Support and Resistance
(S3) 0.8832 (S2) 0.8876 (S1) 0.8937 (PP) 0.8981 (R1) 0.9042 (R2) 0.9086 (R3) 0.9147
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin to move downwards. That is why short positions at the level of 0.9040 with stop loss at 0.9130 and take profit at 0.8813 are recommended.
