AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has continued trading downwards, we are still going with idea that corrective wave [c] (coloured black) of the bigger wave b (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9366 towards the 0.9309 level. Therefore, during the New York session this major currency has continued trading in a bearish mood and price has reached a new low at 0.9280 level. We can consider this move as possible end of the b wave and we want to see more upside movements as confirmation that wave c already started. At the moment the AUDUSD pair is trading around 0.9292 level and we should see more upwards movements in the next few weeks. 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 1.0186 (100% of wave A). To reduce the risk, we can use support point at 0.9100 level as stop loss.
Support and Resistance
(S3) 0.9159 (S2) 0.9213 (S1) 0.9258 (PP) 0.9312 (R1) 0.9357 (R2) 0.9411 (R3) 0.9456
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.9350 with stop loss at 0.9100 and take profit at 1.0186 are recommended.
