AUD/USD Elliott Wave
For the last few days, the AUDUSD pair was trading upwards in a corrective structure. We consider the cycle from 0.8891 as the final E wave (coloured blue) of (4) wave (coloured red). Yesterday, during the Asian session we could observe descending movement from 0.9025 towards the 0.8971 level. Therefore, during the Asian and European sessions this major currency did not manage to hold this level and the price was pushed higher towards the 0.9070 level. At the moment, the AUDUSD pair is trading around 0.9110 and we are expecting to see a big drop in the next few sessions. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.8733 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 0.9250 level as stop loss.
Support and Resistance
(S3) 0.8897 (S2) 0.8934 (S1) 0.8997 (PP) 0.9034 (R1) 0.9097 (R2) 0.9134 (R3) 0.9197
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movement. That is why short positions at the level of 0.9080 with stop loss at 0.9250 and take profit at 0.8733 are recommended.
