AUD/USD Elliott WaveВ
After a few weeks in a choppy upward move, the AUD/USD pair moved lower yesterday, impulsive waveВ i (coloured blue) of the bigger wave (v) (coloured red) was developing. Yesterday'sВ descending movements from 0.9085 toward 0.8927 look impulsive, and that is why we are going with idea thatВ corrective wave (iv) (coloured red) is already complete cycle, final confirmation that we are on theВ right count will be break below the 0.8865 level. We should see a short-term pullback toward 50% of the cycleВ from the 0.9085 level before downward move continue, and we can use this level as ourВ entryВ point for nextВ sell against the 0.9050 level. In accordance with our wave rules and taking into account that wave 5В should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with takeВ profit at 0.8647 (161.8% of wave 4).
Support and ResistanceВ
(S3) 0.8823 (S2) 0.8889 (S1) 0.8926 (PP) 0.8992 (R1) 0.9029 (R2) 0.9095 (R3) 0.9132
Trading forecastВ
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That isВ why short positions at 0.8995 with stop loss at 0.9050 and take profit at 0.8647 are recommended.В
