AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading upwards, just like we expected, impulsive wave (1) (coloured pink) of the bigger wave 5 (coloured blue) has finished its development. During the Monday's Asian and European sessions we could observe strong ascending movement from 1.0341 towards the 1.0399 level. Therefore, during the early New York session this currency has continued trading in a bullish mood and the price reached a new daily high at 1.0409 level. We can consider this move as the end of the impulsive wave (1) (coloured pink). At the moment we are at the end of the corrective wave (2) and we expect to see the price above 1.0465 area in the next 2-3 sessions. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0469 (161.8% of wave 1). To reduce the risk, we can use support at 1.0340 level as stop loss.
Support and Resistance
(S3) 1.0291 (S2) 1.0316 (S1) 1.0358 (PP) 1.0383 (R1) 1.0425 (R2) 1.0450 (R3) 1.0492
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0370 with stop loss 1.0340 and take profit at 1.0469 are recommended.