AUD/USD Elliott Wave
Last week, the AUD/USD pair was trading downwards, impulsive wave (v) (coloured red) of the bigger wave 1 (coloured green) was developing. During the Friday's Asian and European sessions, we could observe descending movements from 0.8886 towards 0.8855 level. Therefore, during the early New York session this major currency did not manage to hold around the low and the price retraced back to 0.8930. At the moment, the AUD/USD pair is trading around Friday's high and we are expecting to see more upward movements this week in the 2 wave (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 0.9285 (50% of wave 1). To reduce the risk, we can use invalidation point at 0.8800 level as stop loss.
Support and Resistance
(S3) 0.8794 (S2) 0.8824 (S1) 0.8873 (PP) 0.8903 (R1) 0.8952 (R2) 0.8982 (R3) 0.9031
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at 0.8890 with stop loss at 0.8800 and take profit at 0.9285 are recommended.
