AUD/USD Elliott Wave
Since our last analyses, the AUD/USD pair has continued trading downwards, just like we expected, impulsive wave .iii (coloured black) of the bigger wave c (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe strong descending movement from 0.9329 towards the 0.9255 level. Therefore, during the early New York session this major pair continued trading in the bearish mood and the price dropped to the 0.9198 level. We can consider this move as the end of the impulsive wave .iii (coloured black). At the moment, the AUD/USD pair is trading around 0.9186 and we are expecting to see more bullish movements in the next few days. 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 1.0078 (100% of wave A). To reduce the risk, we can use support point at the 0.9000 level as stop loss.
Support and Resistance
(S3) 0.9040, (S2) 0.9119, (S1) 0.9176, (PP) 0.9255, (R1) 0.9312, (R2) 0.9391, (R3) 0.9448.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9300 with stop loss at 0.900 and take profit at 1.0078 are recommended.
