AUD/USD Elliott Wave
Since our last analyses, the AUDUSD pair has been trading downwards, an impulsive structure of the corrective wave [a] (coloured black) of the bigger wave b (coloured red) has been developing. During Friday's Asian and European sessions, we could observe ascending movements from 0.9441 towards the 0.9489 level. Therefore, during the early New York session this major pair did not manage to hold this level and the price has retraced back to the 0.9420 level. We can consider this move as the end of the wave [a] (coloured black). At the moment, the AUDUSD pair is trading around the 0.9478 level, and we are expecting to see more bullish movements in this pair before wave [b] finishes developing. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9588 (50% of wave A). To reduce the risk, we can use support point at the 0.9420 level as stop loss.
Support and Resistance
(S3) 0.9340, (S2) 0.9380, (S1) 0.9408, (PP) 0.9448, (R1) 0.9476, (R2) 0.9516, (R3) 0.9544.
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 0.9500 with stop loss at 0.9420 and take profit at 0.9588 are recommended.
