AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has been trading downwards; just like we expected, impulsive wave .iii (coloured black) of the bigger wave C (coloured blue) has been developing. During the Wendesday's Asian and European session, we could observe strong descending movements from 0.9139 towards the 0.8997 level and we can consider this move as the end of the third leg of the Ending Diagonal C wave (coloured blue). Therefore, during the New York session this major pair did not manage to hold around the lows and the price has retraced back to 0.9038 level. At the moment, the AUD/USD pair is trading around 0.9045 level and we are expecting to see one more low before the price turns higher in the C wave. In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.8962 (161.8% of wave 4). To reduce the risk, we can use invalidation point at 0.9130 level as the stop loss.
Support and Resistance
(S3) 0.8829 (S2) 0.8913 (S1) 0.8971 (PP) 0.9055 (R1) 0.9113 (R2) 0.9197 (R3) 0.9255
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin downwards movements. That is why short position at level 0.9030 with stop loss at 0.9130 and take profit at 0.8962 are recommended.
