AUD/USD Elliott Wave
We have seen bearish AUD/USD pair since last week, from last Friday prices have still been favoring for more downward movements when development of the corrective wave (iv) (coloured red) complete. In the hourly chart you can see that we are tracking strong ascending movements from 0.8842 as the final leading diagonal .c of y wave. We are going to look for break below 0.8820 as initial confirmation that (v) wave is developing and that it will give us a fresh sell signal. 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) 0.8765 (S2) 0.8825 (S1) 0.8885 (PP) 0.8945 (R1) 0.9005 (R2) 0.9065 (R3) 0.9125
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short position at 0.8820 with stop loss at 0.8900 and take profit at 0.8735 are recommended.
