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Market Overview
Yesterday the EUR/AUD pair was trading within the upward movement. During the Asian session the major started the ascending movement to the 1.2445 level.Therefore during the New York session the EUR/AUD pair reached a new 4 days high at the 1.2457 level.The EUR/AUD pair finished Tuesday's New York session at 1.2425 level.Today during the Asian session we could observe the continuation of the upward movement to a new high at 1.2490.Today the USD/CAD pair is expected to test the 1.2400 level, but it is also necessary to consider the data on the German Factory Orders m/m as it can affect the rate of the pair.
Support and Resistance levels
(S3) 1.2331 (S2) 1.2363 (S1) 1.2384 (PP) 1.2416 (R1) 1.2448 (R2) 1.2469 (R3) 1.2501
EUR/AUD Elliott Wave Analysis
The EUR/AUD pair has finished the corrective wave (A) in the point 1.2622 and wave (B) in the point 1.2258. Presently we can observe the final wave start of b correction in the final (C) wave. In accordance with our wave rules and taking into account that the wave B will retrace 50 or 61.8% of wave A, we can define the potential targets with help of Fibonacci retracement (1.2258-1.2482) with the first Take Profit at level 1.2371 (50% of wave a) and second Take Profit at 1.2344 (61.8% of wave a). For Stop Loss we can use 1.2485 resistance level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why short position at levels 1.2420 with Stop Loss at 1.2485, Take Profit 1 at 1.2371 and Take Profit 2 at 1.2344 are recommended.
