AUD/USD Elliott Wave
Since our last analysis the AUDUSD pair has been trading downwards, corrective wave B (coloured black) of the bigger wave .A (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 0.8977 towards the 0.8920 level. Therefore, during the New York session this major currency continued trading in bearish mood and the price reached a new daily low at the 0.8900 level. We can consider this move as the end of the B wave (coloured black). At the moment, the AUDUSD pair is trading around 0.8935 and we are expecting to see the price move higher in the next few sessions. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9020 (100% of wave A). To reduce the risk, we can use invalidation point at 0.8900 level as stop loss.
Support and Resistance
(S3) 0.8840, (S2) 0.8878, (S1) 0.8903, (PP) 0.8941, (R1) 0.8966, (R2) 0.9004, (R3) 0.9029.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long potions at the level of 0.8950 with stop loss at 0.8900 and take profit at 0.9020 are recommended.
