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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 1.0760 (100 EMA) starting the ascending movement. During the New York session the AUD/USD pair pushed only 25 pips higher before the price had started the bearish mood.The AUD/USD pair finished Friday's New York session at daily low at 1.0727 level.Today during the Asian session we could observe continuation of the bearish mood.Today the AUD/USD pair is expected to test 1.0670 level before reaching a new high, but it is also necessary to consider the data concerning the USA ISM Non-Manufacturing PMI and Factory Orders m/m that could affect the rate of the pair.
Support and Resistance levels
(S3) 1.0667 (S2) 1.0702 (S1) 1.0723 (PP) 1.0757 (R1) 1.0792 (R2) 1.0813 (R3) 1.0847
AUD/USD Elliott Wave Analysis
The AUD/USD pair finished 1 wave of the bigger (3) wave at 1.0855. Presently we can observe end of 2 wave where we can enter Long for 3 wave. According to our wave rules and taking into consideration that the wave 3 is the longest, we can define the potential targets with help of Fibonacci extension(1.0665-1.0856-1.0670) with first Take Profit at level 1.0875(100% of wave 1) and second Take Profit at 1.0931(127.2% of wave 1). For Stop Loss we can use invalidation point at 1.0650.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why Long position at levels 1.0700 with Stop Loss at 1.0650, Take Profit 1 at 1.0875 and Take Profit 2 at 1.0931 are recommended.
