AUD/USD Elliott Wave analysis
The AUD/USD pair has continued trading in a choppy sideways movements yesterday, corrective wave [b] (coloured black) of the bigger wave B (coloured blue) has been developing. In the 1-hour chart above, we can see the Triangle pattern developing from the 0.8935 level. As long as the price stays below the 0.9030 region, we can expect at least one more drop towards 0.8861 before the price turns higher in the C wave. In accordance with our wave rules and taking into account that wave B should extend 50% of wave A, we can define potential targets by measuring wave A with take profit at 0.8857 (50% of wave A). Swing traders should wait for the B wave to complete and from there we can try to join the buyers against the 0.8750 level.
Support and Resistance
(S3) 0.8903, (S2) 0.8935, (S1) 0.8955, (PP) 0.8988, (R1) 0.9020, (R2) 0.9040, (R3) 0.9073.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.8950 with stop loss at 0.9065 and take profit at 0.8857 are recommended.
