AUD/USD Elliott Wave
At the beginning of this week the AUD/USD pair has been trading sideways, corrective wave (iv) (coloured red) of the bigger wave 1 (coloured green) has been developing. Yesterday's upward movements from 0.8331 towards 0.8957 level may ondocate that the corrective wave (iv) as a flat pattern. In the 1-hour chart we can see that blue c wave is almost over and that is why we are going to look for selling opportunity in the AUD/USD pair while price stays below 0.9000 level. 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 0.8735 (161.8% of wave 4).
Support and Resistance
(S3) 0.8752, (S2) 0.8792, (S1) 0.8848, (PP) 0.8888, (R1) 0.8944, (R2) 0.8984, (R3) 0.9040.
Trading forecast
Proceeding from the Elliot Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.8920 with stop loss at 0.8900 and take profit at 0.8735 are recommended.
