AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading downwards, corrective wave [y] (coloured black) of the bigger wave b (coloured red) has been developing. Yesterday, during the Asian and European sessions, we could observe a strong descending movement from 0.9202 towards the 0.9087 level and we can consider this move as the end of the C wave (coloured blue) of the bigger wave [y] (coloured black). Therfore, during the early New York session, this major currency did not manage to hold around the lows and the price has retraced back to 0.9133 level. At the moment, the AUD/USD pair is trading around 0.9105 and we are expecting to see a strong bullish movement in the next few sessions to finally confirm the start of 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 the potential targets with measuring wave A with take profit at 0.9985 (100% of wave A). To reduce the risk, we can use invalidation at 0.9000 level as stop loss.
Support and Resistance
(S3) 0.8958 (S2) 0.9022 (S1) 0.9074 (PP) 0.9138 (R1) 0.9190 (R2) 0.9254 (R3) 0.9306
Trading forecast
Proceeding from the Elliot Wave rules today, the trend is expected to begin the upwards movement. That is why long position at the level of 0.9300 with stop loss at 0.9000 and take profit at 0.9985 are recommended.
