AUD/USD Elliott Wave
The AUD/USD pair has been trading downwards for the last couple of weeks, low at the Friday change our count from corrective to impulsive structure, so let us see what can we expect next in this pair. During the Friday's Asian and European sessions, we could observe descending movements from 0.8960 towards the 0.8908 level. Therefore, during the early New York session this major currency pair did not manage to hold above the lows and the price retraced back to 0.8970 level. At the moment, the AUD/USD pair is trading around 0.8940 and we are expecting to see one more push lower before the price turns bullish in the wave 2 (coloured green). In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9330 (50% of wave 1). To reduce the risk, we can use invalidation point at 0.8800 level as stop loss.
Support and Resistance
(S3) 0.8906 (S2) 0.8976 (S1) 0.9012 (PP) 0.9082 (R1) 0.9118 (R2) 0.9188 (R3) 0.9224
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 0.9000 with stop loss at 0.8800 and take profit at 0.9330 are recommended.
