AUD/USD Elliott Wave
Since our last analyses, the AUD/USD pair has been trading downwards, corrective wave c (coloured blue) of the bigger wave b (coloured red) has been developing. During the Monday's Asian session we could observe ascending movement from 0.9105 towards the 0.9167 level and we can consider this move as the end of the b wave (coloured blue). Therefore, during the European and New York session this major pair did not manage to hold this level and price has dropped towards 0.9088 level (new sessions low). At the moment, the AUD/USD pair is trading around 0.9094 level and we should see one more push lower before price turn higher in the C wave.In accordance with our wave rules and taking into account that wave B should retrace 90% of wave A, we can define the potential targets measuring wave A with take profit at 0.8940 (90% of wave A). To reduce the risk, we can use the invalidation point at 0.9150 level as the stop loss.
Support and resistance
(S3) 0.8996 (S2) 0.9043 (S1) 0.9074 (PP) 0.9121 (R1) 0.9152 (R2) 0.9199 (R3) 0.9230
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why the short position at the level 0.9050 with the stop loss at 0.9150 and take profit at 0.8940 are recommended.
