AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has continued trading downwards, corrective wave b (coloured blue) of ht bigger wave (a) (coloured red) has been developing. Since Monday's Asian session until now, we have been able to observe strong descending movements from 0.8958 towards 0.8880, that is taking corrective structure and we are can consider this move as .a-.b-.c of the b wave (coloured blue). On the hourly chart above, you can see that we are expecting at least one more upward movement to complete the bigger wave (a) (coloured red) and that is why we are going to look for more buying opportunity while price stay above the 0.8820 level. In accordance with our wave rules and taking into account that wave C should retrace 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9046 (123.6% of wave A). Alternate scenario: While the AUD/USD pair stays below the level of 0.8970, we can not rule out the possibility of one more downward move towards the 0.8733 level in the (v) wave (coloured red) to complete the bigger wave 1 (coloured green).
Support and Resistance
(S3) 0.8871 (S2) 0.8888 (S1) 0.8906 (PP) 0.8923 (R1) 0.8941 (R2) 0.8958 (R3) 0.8976
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at level 0.8900 with stop loss at 0.8820 and take profit at 0.9046 are recommended.
