AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has been trading upwards, just like we expected, corrective wave c (coloured blue) of the bigger wave (a) (coloured red) has been developing. After a few days in a downward move from 0.8957, this major currency pair found support at 0.8875 yesterday during the late Asian session, and from there, we can observe impulsive reaction. All the way, the AUD/USD pair managed to stay above the 0.8875 level, we can look for at least one more push higher to complete the (a) or (iv) wave, so our buying strategy from yesterday is still valid. 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).
Support and Resistance
(S3) 0.8820 (S2) 0.8848 (S1) 0.8871 (PP) 0.8899 (R1) 0.8922 (R2) 0.8950 (R3) 0.8973
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 0.8875 and take profit at 0.9046 are recommended.
