AUD/USD Elliott Wave
Yesterday, the AUD/USD pair was trading higher just like we expected, impulsive wave (5) (coloured pink) of the bigger wave 1 (coloured blue) has finished developing. During the Tuesday's Asian and European sessions we could observe strong ascending movement from 1.0266 towards 1.0334 level and we can consider this movement as the end of the impulsive wave 1 (coloured blue). Therefore, during the New York session this major currency did not manage to hold the highs and the price dropped to the 1.0304 level. At the moment the price is trading around 1.0307 area and we expect to see the price below 1.0255 level soon. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0254 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0335 level as stop loss.
Support and Resistance
(S3) 1.0211 (S2) 1.0239 (S1) 1.0280 (PP) 1.0308 (R1) 1.0349 (R2) 1.0377 (R3) 1.0418
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0300 with stop loss at 1.0335 and take profit at 1.0254 are recommended.