EUR/AUD Elliott Wave
Since our last analyses the EUR/AUD pair was trading upwards, impulsive wave 3 (coloured pink) of the bigger 3 wave (coloured blue) was developing. During yesterday’s Asian session we could observe descending movement from 1.2940 towards the 1.2878 level and we can consider this move as the end of the wave (2) (coloured pink). Therefore, during the European and New York sessions after the wave (3) started, this currency did not manage to hold this level and the price reached 1.2984 level. At the moment the EUR/AUD pair is trading around 1.2962 level and we expect to see the price pushing above 1.3105 soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1 we can define the potential targets with measuring wave 1 with take profit at 1.3105 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.2866 level as stop loss.
Support and Resistance
(S3) 1.2798 (S2) 1.2838 (S1) 1.2882 (PP) 1.2922 (R1) 1.2966 (R2) 1.3006 (R3) 1.3050
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.2985 with stop loss 1.2866 and take profit at 1.3105 are recommended.