AUD/USD Elliott Wave
Last week, the AUD/USD pair was trading downwards, corrective wave c (coloured blue) of the bigger wave b (coloured black) was developing. During Monday's Asian and European sessions, we could observe a descending movement from 0.9128 towards the 0.9069 level. Therefore, during the New York session, this major pair did not manage to hold around the lows and the price retraced back to the 0.9114 level. At the moment, the AUD/USD pair has been trading around the 0.9082 level, and we are expecting just one more push lower before the price turns higher in the .iii wave (coloured black). In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9280 (161.8% of wave 1). To reduce the risk, we can use invalidation point at the 0.8989 level as stop loss.
Support and Resistance
(S3) 0.9016, (S2) 0.9042, (S1) 0.9075, (PP) 0.9101, (R1) 0.9134, (R2) 0.9160, (R3) 0.9193.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9060 with stop loss at 0.8989 and take profit at 0.9280 are recommended.
