AUD/USD Elliott Wave
Last week, the AUDUSD pair was trading downwards, three wave pullback in the (x) wave (coloured green) for the bigger wave A (coloured red) was developing. During Friday's Asian session, we could observe an ascending movement from 0.9581 towards the 0.9623 level. Therefore, during the European and New York sessions this major pair did not manage to hold this levels and the price retraced back to the 0.9570 level. At the moment, the AUDUSD pair is trading around the 0.9600 level, and we are expecting to see one more push lower before the price moves higher in the (y) wave. In accordance with our wave rules and taking into account that wave y should retrace 100% of wave y, we can define the potential targets with measuring wave w with take profit at 0.9927 (100% of wave w). To reduce the risk, we can use support point at the 0.9350 level as stop loss.
Support and Resistance
(S3) 0.9508, (S2) 0.9540, (S1) 0.9560, (PP) 0.9592, (R1) 0.9612, (R2) 0.9644, (R3) 0.9664.
Trading forecast
Proceeding from Elliott wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 0.9512 with stop loss at 0.9350 and take profit at 0.9927 are recommended.
