AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading sideways, corrective wave iv (coloured blue) of the bigger wave (v) (coloured red) has been developing. During the Monday's Asian and European sessions, we could observe descending movements from 0.8968 towards 0.8926 level. Therefore, during the New York session this major currency did not manage to hold this level and the price retraced all the way back to 0.8968. At the moment, the AUD/USD pair is trading around 0.8939 and we are expecting to see one more push lower before we say that 1 wave (coloured green) is complete cycle. 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 0.8888 (161.8% of wave 4). To reduce the risk, we can use invalidation point at 0.8930 level as stop loss.
Support and Resistance
(S3) 0.8874 (S2) 0.8897 (S1) 0.8922 (PP) 0.8945 (R1) 0.8970 (R2) 0.8993 (R3) 0.9018
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short positions at the level of 0.8910 with stop loss at 0.8930 and take profit at 0.8888 are recommended.
