AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has been trading upwards, impulsive wave .5 (coloured green) of the bigger wave C (coloured blue) has been developing. During the Monday's Asian and European sessions we could observe an ascending movement from 0.9164 towards the 0.9223 level. Therefore, during the New York session this currency pair continued trading in the bullish mood and the price reached a new session high at 0.9270. At the moment, the AUDUSD pair is trading around 0.9250 and we are expecting to see the price moving lower for the next few days. 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 0.8766 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 0.9400 as stop loss.
Support and Resistance
(S3) 0.9108 (S2) 0.9137 (S1) 0.9182 (PP) 0.9211 (R1) 0.9256 (R2) 0.9285 (R3) 0.9330
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin a downward movement. That is why short positions at the level of 0.9200 with stop loss at 0.9400 and take profit at 0.8766 are recommended.
