AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has been trading upwards, just like we expected, impulsive wave iii (coloured blue) of the bigger wave [a] (coloured black) has been developing. During Monday's Asian and European sessions, we could observe ascending movements from 0.9358 towards the 0.9417 level, and we can consider them as the end of the iii wave (coloured blue). Therefore, during New York session this commodity currency did not manage to hold around the highs and the price dropped to the 0.9361 level ( a new intraday low). At the moment, the AUD/USD pair is trading around 0.9417, and we are likely to see a small correction in the next few sessions. 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 0.9352 (50% of wave A). To reduce the risk, we can use support point at the 0.9480 level as stop loss.
Support and Resistance
(S3) 0.9290, (S2) 0.9324, (S1) 0.9350, (PP) 0.9384, (R1) 0.9410, (R2) 0.9444, (R3) 0.9470.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 0.9450 with stop loss at 0.9480 and take profit at 0.9352 are recommended.
