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AUD/USD Elliott Wave
Since our last update the AUD/USD pair has finished its corrective wave (2) (coloured green) at 61.8% of the wave (1) (coloured green) and we could observe the beginning of the impulsive wave (3). Yesterday during the European and the early New York sessions, we could observe strong descending movement towards the 1.0098 level and we can consider this move as the end of the wave (2). Therefore, during the second half of the NY session, this pair started pushing higher and price reached 1.0153 (end of wave (1) (coloured pink)). At the moment, we can observe the AUD/USD pair trading around 1.0165 level and we are expecting to see the price above 1.0200 today. 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 (1.0098-1.0153-1.0122) with Take Profit at 1.0209 (161.8% of wave 1). Support at 1.0120 point can be used as Stop Loss point. Also it is necessary to monitor the U.S. PPI m/m, Core PPI m/m, Prelim UoM Consumer Sentiment and FOMC Member Lockhart Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 1.0007 (S2) 1.0067 (S1) 1.0105 (PP) 1.0166 (R1) 1.0226 (R2) 1.0264 (R3) 1.0325
Trading Forecast
Proceeding from Elliott Wave rules this week, the trend is expected to begin the upward movement. That is why long positions at level 1.0170 with Stop Loss 1.0120 and Take Profit at 1.0209 are recommended.
