AUD/USD Elliott Wave
The whole week the AUDUSD pair has been trading downwards, corrective wave (c) (coloured green) of the bigger wave [iv] (coloured black) has been developing. Yesterday, during the Asian and European sessions we could observe strong ascending movements from 0.9347 towards the 0.9400 level.Therefore, during the early New York session the AUDUSD pair did not manage to hold this levels and the price retraced back to the 0.9339 level. At the moment, the AUDUSD pair is trading around the 0.9334 level and we are expecting to see a start of the [v] wave (colored black) in the next few hours. 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 0.9570 (123.6% of wave 4). To reduce the risk, we can use invalidation point at the 0.9260 level as stop loss.
Support and Resistance
(S3) 0.9270 (S2) 0.9305 (S1) 0.9332 (PP) 0.9367 (R1) 0.9394 (R2) 0.9429 (R3) 0.9456
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.9375 with stop loss at 0.9260 and take profit at 0.9570 are recommended.
