AUD/USD Elliott Wave
For the last six weeks, the AUD/USD pair has been trading in a downwards channel, corrective wave b (coloured red) of the bigger wave (B) (coloured blue) has been developing. During the Friday's Asian and European session we could observe ascending movements from 0.9054 towards the 0.9119 level. Therefore, during the early New York session this major pair has continued trading in a bullish mood and price has reached a new sessions high at 0.9139 level. At the moment the AUD/USD pair is trading around 0.9165 level and we are expecting to see more bullish movements for the next few weeks.In accordance with our wave rules and taking into account that wave C should retrace 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9850 (123.6% of wave A). To reduce the risk, we can use invalidation point at 0.8850 level as stop loss.
Support and Resistance
(S3) 0.8442 (S2) 0.8748 (S1) 0.8929 (PP) 0.9235 (R1) 0.9416 (R2) 0.9722 (R3) 0.9903
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.9200 with stop loss at 0.8850 and take profit at 0.9850 are recommended.
