AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has been trading upwards, just like we expected, impulsive wave i of the bigger wave (iii) has been developing. In the 1-hour chart above, we can see that the FLAT pattern in the (ii) wave has ended at the 0.8993 level, and from there we are tracking the (iii) wave. In the short term, we can expect to see a pullback towards the 0.9043-0.9031 area, 50-61.8% of the wave, but while price stay above the 0.8993 level, our focus remains only on a buying opportunity in the (iii) wave. In accordance with our wave rules and taking into account that wave (iii) should extend 161.8% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 0.9280 (161.8% of wave (i)). The RSI indicator on the 1-hour chart, points for the bullish divergence, this also support our long idea.
Support and Resistance
(S3) 0.8949, (S2) 0.8971, (S1) 0.9006, (PP) 0.9028, (R1) 0.9063, (R2) 0.9085, (R3) 0.9120.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.9040 with stop loss at 0.8993 and take profit at 0.9280 are recommended.
