AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has reached a new highs above 0.9250 area, wave (iii) (coloured green) of the bigger wave [iii] (coloured black) has been developing. In the 1-hour chart above, we can observe that we are looking at the C wave as an impulsive pattern instead of ending diagonal, reason for moving our count to this view was the strong upwards reaction from the 0.8994 level. While price remain above the end of b of (ii) wave at the 0.9136 we are going to focus more on a buying opportunity at the next pullback in the (iv) of [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 [iii] with take profit at 0.9320 (161.8% of wave [i] ). Swing traders should hold the longs and look for the 0.9500 and higher levels as next resistance in the pair.
Support and Resistance
(S3) 0.9170, (S2) 0.9191, (S1) 0.9228, (PP) 0.9249, (R1) 0.9286, (R2) 0.9307, (R3) 0.9344.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 0.9226 with stop loss at 0.9137 and take profit at 0.9320 are recommended.
