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Market Overview
On Friday during the European session the AUD/USD pair was trading in a downward trend and reached the support level 1.0700 (200 EMA) starting the ascending movement. During the New York session the AUD/USD pair pushed only 45 pips higher before the price had started pushing again within the bearish mood. Today in the early Asian session this major continued the downward movement and we could observe the fact that the price reached the low 1.0658. The AUD/USD pair is currently retesting the 1.0658 low. Today the AUD/USD pair is expected to go higher, but it is also necessary to consider the data concerning the USA Pending Home Sales m/m that could affect the rate.
Support and Resistance levels
(S3) 1.0645 (S2) 1.0670 (S1) 1.0686 (PP) 1.0712 (R1) 1.0737 (R2) 1.0753 (R3) 1.0779
The AUD/USD Elliott Wave Analysis
The AUD/USD pair is finished the wave 1 in the point 1.0754. Presently we can observe the end of the wave 2. The end of the wave 2 is to be located near the levels 1.0657 and 1.0631, where we can open the long positions for the wave 3. According to our wave rules and taking into consideration that the wave 3 is the longest, we can define today’s targets with Fibonacci extension. It is recommended to set Take profit at level 1.0750 (61.8% of wave (1)).For stop loss we can use the 1.0630 level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why Long position at levels 1.0675 with Stop Loss at 1.0630 and Take Profit at 1.0750 are recommended.
