AUD/USD Elliott Wave
Since our last analyses, the AUD/USD pair has been trading downwards, that is why we need to adjust our primary wave count slightly, and we are supporting the idea that c wave (coloured blue) of the bigger b wave (coloured red) is still developing. During Wednesday's Asian and European sessions, we could observe descending movements from 0.9439 towards the 0.9365 level. Therefore, during the early New York session this major pair continued trading in the bearish mood and the price reached a new session low at 0.9315. At the moment, the AUD/USD pair is trading around the 0.9298 level, and we are expecting to see one more push lower, before the price turns higher in the c wave (coloured red). In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define potential targets with measuring wave A with take profit at 0.9180 (100% of wave A). To reduce the risk, we can use resistance point at 0.9350 level as stop loss.
Support and Resistance
(S3) 0.9153 (S2) 0.9234 (S1) 0.9285 (PP) 0.9366 (R1) 0.9417 (R2) 0.9498 (R3) 0.9549
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short positions at 0.9300 with stop loss at 0.9350 and take profit at 0.9180 are recommended.
