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AUD/USD Elliott Wave
Yesterday the AUD/USD pair was trading within the downward movement. During the European session we could observe the AUD/USD pair breaking through 50 EMA support and touching 100 EMA. Therefore during the early New York session this major continued to go in a bearish mood and we saw the price at the 1.0340 level. We can consider this move as end of 2 wave (coloured pink). Today during the Asian session the price started pushing up and we could see the price retracing to 1.0390. Presently we can observe the start of 3 wave (coloured pink). In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0304-1.0417-1.0342) and Take Profit at 1.0526 (161.8% of wave 1). As Stop Loss the invalidation point at 1.0340 can be used. Also it is necessary to consider the data concerning the U.S. Unemployment Claims, Existing Home Sales, Philly Fed Manufacturing Index and G20 Meetings that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.0295 (S2) 1.0324 (S1) 1.0341 (PP) 1.0370 (R1) 1.0399 (R2) 1.0416 (R3) 1.0445
Trading Forecast
Proceeding from Elliott Wave Rules today the trend is expected to begin the upward movement. That is why long positions at level 1.0400 with Stop Loss at 1.0340 and Take Profit at 1.0526 are recommended.
