AUDUSD Elliott Wave
Since our last analysis the AUDUSD pair has been trading downwards, just like we expected, corrective wave X (coloured blue) of the bigger wave (4) has started developing. During the Friday's Asian and European sessions, we could observe ascending movement from 0.9109 towards 0.9179. Therefore, during the New York session, this currency pair has continued trading in a bullish mood and the price has reached a new sessions high at 0.9214. At the moment, the AUDUSD pair is trading around 0.9153 and we are expecting to see continuation of this bearish move for the next few sessions. In accordance with our wave rules and taking into account that wave X should retrace 50% of wave X, we can define potential targets with measuring wave W with take profit at 0.9032 (50% of wave W). To reduce the risk, we can use resistance point at 0.9250 as stop loss.
Support and Resistance
(S3) 0.8986 (S2) 0.9035 (S1) 0.9116 (PP) 0.9165 (R1) 0.9246 (R2) 0.9295 (R3) 0.9376
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9145 with stop loss at 0.9250 and take profit at 0.9032 are recommended.
