AUD/USD Elliott Wave
Since our last analyses, the AUD/USD pair has been trading upwards, just like we expected, impulsive wave .iii (coloured black) of the bigger wave 1 (coloured blue). Yesterday, during the early Asian session, we could observe strong descending movement from 0.9166 towards the 0.9119 level, and we can consider this move as the end of the b wave (coloured red). Therefore, during the European and New York sessions, this currency pair did not manage to hold around the lows and the price retraced back to 0.9187. At the moment, the AUD/USD pair is trading around 0.9189 and we are expecting to see more bullish movements in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 3 with take profit at 0.9292 (161.8% of wave 1). To reduce the risk, we can use invalidation point at the 0.9119 level as stop loss.
Support and Resistance
(S3) 0.9056, (S2) 0.9087, (S1) 0.9124, (PP) 0.9155, (R1) 0.9192, (R2) 0.9223, (R3) 0.9260.
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 0.9160 with stop loss at 0.9119 and take profit at 0.9292 are recommended.
