AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading upwards, just like we expected, impulsive wave (3) (coloured pink) of the bigger wave 1 (coloured blue) was developing. During the Monday's Asian and European sessions we could observe strong ascending movement from 1.0201 towards the 1.0276 level. Therefore, during the New York session this currency has continued trading in a bullish mood and the price reached 1.0311 level. We can consider this movement as the end of the wave (3) (coloured pink). Today during the early Asian session the AUD/USD pair has finished development of the corrective wave (4) (coloured pink) at 1.0265 level and we expect to see the price above 1.0320 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0327 (61.8% of wave 3). To reduce the risk, we can use invalidation at 1.0237 level as stop loss.
Support and Resistance
(S3) 1.0140 (S2) 1.0170 (S1) 1.0224 (PP) 1.0254 (R1) 1.0308 (R2) 1.0338 (R3) 1.0392
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0290 with stop loss 1.0237 and take profit at 1.0327 are recommended.