AUD/USD Elliott Wave
For a few days, the AUDUSD pair has been trading upwards, corrective wave C (coloured blue) of the bigger wave (4) has been developing.Yesterday, during the Asian and European sessions we could observe ascending movements from 0.9238 towards the 0.9288 level. Therefore, during the New York session this major currency continued trading in bullish mood and the price reached a new high at the 0.9318 level. We can consider this move as the end of the wave (4). At the moment, the AUDUSD pair is trading around 0.9285 and we are expecting to see more bearish movements in 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 0.8732 (123.6% of wave 4). To reduce the risk, we can use invalidation point at the 0.9400 level as stop loss.
Support and Resistance
(S3) 0.9145, (S2) 0.9180, (S1) 0.9247, (PP) 0.9282, (R1) 0.9349, (R2) 0.9384, (R3) 0.9451.
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 0.8732 are recommended.
