AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading sideways, corrective wave b (coloured blue) of the bigger wave b (coloured red) has been developing. Yesterday, during the Asian session we could observe descending movement from 0.9128 towards the 0.9055 level. Therefore, during the European and New York session this major pair did not manage to hold around the lows and the price retraced back to 0.9144 level (end of the b wave on the chart). At the moment, the AUD/USD pair is trading around 0.9036 level and we expect to see few more sessions of bearish movements 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 with measuring wave A with take profit at 0.8940 (90% of wave A). To reduce the risk, we can use invalidation point at 0.9150 level as stop loss.
Support and resistance
(S3) 0.8989 (S2) 0.9023 (S1) 0.9078 (PP) 0.9112 (R1) 0.9167 (R2) 0.9201 (R3) 0.9256
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.9000 with stop loss at 0.9100 and take profit at 0.8940 are recommended.
