AUD/USD Elliott Wave
Last week, the AUDUSD pair was trading downwards, corrective wave [iv] (coloured black) of the bigger wave A (coloured red) was developing. During Friday's Asian session, we could observe an ascending movement from 0.9331 towards the 0.9368 level. Therefore, during the European and New York sessions, this major pair did not manage to hold this levels and the price dropped to a new weekly low at the 0.9296 level. At the moment, the AUDUSD pair is at the beginning of the final [v] wave (coloured black) and we are expecting to see more bullish movement for 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 0.9585 (123.6% of wave 4). To reduce the risk, we can use invalidation point at the 0.9200 level as stop loss.
Support and Resistance
(S3) 0.9206 (S2) 0.9251 (S1) 0.9283 (PP) 0.9328 (R1) 0.9360 (R2) 0.9405 (R3) 0.9437
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 0.9350 with stop loss at 0.9200 and take profit at 0.9585 are recommended.
