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Market Overview
Yesterday the AUD/USD pair was trading within downward movement. During the European session the major started ascending movement to the 1.0465 level.Therefore during the New York session we could observe continuation of bearish mood and price reaching a new 8 weeks low at 1.0427 level.Today at the Asian session we could observe upward movement of this major pair and price above 1.0500 level.Today the AUD/USD pair is expected to test 200 EMA Resistance at 1.0565 level. Also it is necessary to consider the data concerning the USD PPI m/m, Unemployment Claims,TIC Long-Term Purchases and Philly Fed Manufacturing Index that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.0352 (S2) 1.0401 (S1) 1.0430 (PP) 1.0479 (R1) 1.0528 (R2) 1.0557 (R3) 1.0606
AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished the wave (5) of the bigger corrective wave A in the point 1.0422.Presently we can observe start of corrective wave B.In accordance with our wave rules and taking into account that the wave B will retrace to 61.8 or 78.6% of the wave A we can define the potential targets with the help of Fibonacci retracement (1.0855-1.0422) with first Take Profit at level 1.0690 (61.8% of the wave A) and second Take Profit at 1.0763 (78.6% of the wave A). For Stop Loss we can use 1.0420 support level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin an upward movement. That is why long positions at levels 1.0500 with Stop Loss at 1.0420, Take Profit at 1.0690 and Take Profit 2 at 1.0763 are recommended.
