AUD/USD Elliott Wave
For the last few days the AUDUSD pair has been trading upwards, that is why we extended our primary view on the impulsive wave 3 (coloured green) of the bigger (c) wave (coloured blue). During Wednesday's Asian and European sessions we could observe ascending movements from 0.9331 towards the 0.9375 level. Therefore, during the early New York session this major currency pair continued trading in the bullish mood and the price reached a new high at the 0.9528 level. At the moment, the AUDUSD pair is trading around yesterday's highs and we are expecting to see one more push higher before the price turns lower in 4 wave (coloured green). In accordance with our wave rules and taking into account that wave 4 should retrace 38.2% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9315 (38.2% of wave 3). To reduce the risk, we can use invalidation point at 0.9600 level as stop loss.
Support and Resistance
(S3) 0.9204 (S2) 0.9269 (S1) 0.9397 (PP) 0.9462 (R1) 0.9590 (R2) 0.9655 (R3) 0.9783
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 0.9550 with stop loss at 0.9600 and take profit at 0.9315 are recommended.
