AUD/USD Elliott Wave
From the start of this week the AUD/USD pair has been trading downwards, corrective b wave (coloured blue) of the bigger wave (a) (coloured red) has been developing. On the hourly chart we can see that cycle from 0.9756 should be over at the 0.8819 level in the five wave move. While the price stays above the last week low (0.8820) we can expect to see one more push higher to complete the blue c of red (a) wave.In accordance with our wave rules and taking into account that wave C should retrace 100-123.6% of wave A we can define the potential targets with measuring wave A with take profit at 0.025-0.9057 (100-123.6% of wave A). Swing Traders can try to get full 50% of the green wave 1 at 0.9295 level with stops at 0.8820 level.
Alternate Scenario: Wave 1 (coured green) is currently in the wave (iv) (coloured red) and break below 0.8820 level will move this major pair towards 0.8720 before we see the end of wave 1.
Support and Resistance
(S3) 0.8875 (S2) 0.8895 (S1) 0.8916 (PP) 0.8936 (R1) 0.8957 (R2) 0.8977 (R3) 0.8998
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at 0.8920 with stop loss at 0.8820 and take profit at 0.9057 are recommended.
