AUD/USD Elliott wave
For the last few days, the AUD/USD pair is trading downwards, impulsive wave iii (coloured blue) of the bigger wave (v) (coloured red) has been developing. In the hourly chart above you can see that we have switched to our alternate count and we are counting descending movement from 0.8957 as final wave (v) (coloured red).Today the AUD/USD pair is trading slightly higher around 0.8860, but while price stays below the 0.8927 level we are going to favor more downward movements in this major currency. 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 0.8734 (161.8% of wave 4).
Support and Resistance
(S3) 0.8776 (S2) 0.8818 (S1) 0.8843 (PP) 0.8885 (R1) 0.8910 (R2) 0.8952 (R3) 0.8977
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short positions at level 0.8840 with stop loss at 0.8927 and take profit at 0.8734 are recommended.
