AUD/USD Elliott Wave
Since our last analysis the AUDUSD pair has been trading upwards, the triangle line was broken, so we have adjusted our primary view a little bit. Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9035 towards the 0.9151 level. Therefore, during the New York session this major currency pair continued trading in the bullish mood and the price found resistance at the 0.9186 level. At the moment, the AUDUSD pair is trading around 0.9150 and we are expecting to see more upward movements before wave (4) (coloured red) ends all three swings of the flat correction. In accordance with our wave rules and taking into account that wave 3 should retrace 261.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9277 (261.8% of wave 1). To reduce the risk, we can use invalidation point at the 0.9100 level as stop loss.
Support and Resistance
(S3) 0.8925 (S2) 0.8981 (S1) 0.9076 (PP) 0.9132 (R1) 0.9227 (R2) 0.9283 (R3) 0.9378
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long position at the level of 0.9170 with stop loss at 0.9100 and take profit at 0.9277 are recommended.
