AUD/USD Elliott Wave
From the beginning of this week the AUDUSD pair has been trading upwards, corrective wave (a) (coloured green) of the bigger wave [5] (coloured black) has been developing. Yesterday, during the Asian and European sessions we could observe strong ascending movements from 0.9286 towards the 0.9434 level and we can consider this move as the end of the c wave (coloured blue) of the (a) wave (coloured green). Therefore, during the early New York session this major pair did not manage to hold this levels and the price retraced back to 09.373. At the moment, the AUDUSD pair is trading around 0.9356 and we are expecting to see final push higher in the early London session today. In accordance with our wave rules and taking into account that wave C should retrace 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9542 (123.6% of wave A). To reduce the risk, we can use resistance point at the 0.9430 level as stop loss.
Support and Resistance
(S3) 0.9164 (S2) 0.9225 (S1) 0.9311 (PP) 0.9372 (R1) 0.9458 (R2) 0.9519 (R3) 0.9605
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 0.9380 with stop loss at 0.9286 and take profit at 0.9542 are recommended.
