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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 1.0510 (50 EMA). During the New York session the AUD/USD pair pushed to the 1.0597 level (4 Days high). The AUD/USD pair has finished Friday's trading day few pips lower at 1.0588 level.Today during the Asian session we could observe the continuation of the bullish mood. After RBA Gov Stevens Speaks we saw this major pair hitting new high at 1.0619 level. Today the AUD/USD is expected to test the 1.500 support level.
Support and Resistance levels
(S3) 1.0477 (S2) 1.0511 (S1) 1.0531 (PP) 1.0565 (R1) 1.0599 (R2) 1.0619 (R3) 1.0653
AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished the wave A (colored pink) of the bigger wave B (colored blue) in the point 1.0619. Presently we can observe the beginning of the wave B (colored pink). In accordance with our wave rules and taking into account that the wave B retraces 50% or 61.8% of the wave A we can define the potential targets with the help of Fibonacci retracement (1.0422-1.0619) with First Take Profit at 1.0522 (50% of wave (A)) and Second Take Profit at 1.0498(61.8% of wave (A)). For Stop Loss we can use 1.0620 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 1.0570 with Stop Loss at 1.0620, Take Profit at 1.0522 and Take Profit 2 at 1.0498 are recommended.
