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Market Overview
The AUD/USD was trading in a upward move yesterday, in European session we could observe price broke the 100 and 200EMA resistance and reached a new high at the 1.0715.This major pair did not manage to hold this level in New York session and price started falling 50 Pips before we saw upward move again yesterday. The AUD/USD finished yesterday's trading session few pips above daily high around 1.0715 level.Today in early Asian session price continue to go higher reaching 1.0754.We are expecting to see this major pair under 1.0650 today,We saw Fitch has downgraded the Commonwealth Bank of Australia so short position is recommended but ,we also need to take a look at USA New Home Sales today that could affect this pair.
Support and Resistance levels
(S3) 1.0642 (S2) 1.0668 (S1) 1.0695 (PP) 1.0679 (R1) 1.0716 (R2) 1.0743 (R3) 1.0770
AUD/USD Elliott Wave Analysis
The AUD/USD finished (1) wave at 1.0754, and we are currently in (2) wave.According to our wave rules and taking into consideration that wave (2) will retrace 50-61.8% of wave (1) we can project our targets with Fibonacci retracement (1.0597-1.0754) to first take profit level at 1.0676(50% of wave (1)) and second take profit at 1.0657(61.8& of wave (1)).For Stop loss we can use 1.0760 resistance level.
Trading Forecast
Proceeding from Elliott Wave Rules the trend is expected to begin the downward movement to go lower today. That is why Short position at levels 1.0710 with Stop Loss at 1.0760,Take Profit 1 at 1.0657 and Take Profit 2 at 1.0657 are recommended
