AUDUSD Elliott Wave
Since our last analyses the AUDUSD pair has continued trading lower, so like in the USDCAD pair, we are going to call [b] wave (coloured black) completed cycle at the 0.9542 level and we should be looking for more downwards movements in the [c] wave. Yesterday, during the Asian and European sessions, we could observe strong descending movement from 0.9542 towards the 0.9464 level. Therefore, during the New York session this major pair continued trading in the bearish mood and the price reached a new session low at the 0.9438 level. At the moment, the AUDUSD pair is trading around 0.9469 and we are expecting to see the price lowering again in the next session. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A we can define the potential targets with measuring wave A with take profit at 0.9200 (100% of wave A). To reduce the risk, we can use resistance point at the 0.9540 level as stop loss.
Support and Resistance
(S3) 0.9329 (S2) 0.9383 (S1) 0.9419 (PP) 0.9473 (R1) 0.9509 (R2) 0.9563 (R3) 0.9599
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short positions at the level of 0.9480 with stop loss at 0.9540 and take profit at 0.9200 are recommended.
