AUD/USD Elliott Wave
For the last few days the AUD/USD pair was trading downwards, corrective wave (2) (coloured pink) of the bigger 5 wave (colored blue) was developing. Yesterday during the Asian and European sessions we could observe slight descending movement from 1.0390 towards the 1.0350 level and we can consider this movement as the end of the wave (2) (coloured pink). Therefore, during the New York session when development of the impulsive wave (3) starts this currency has retraced back to 1.0380 area. Today the AUD/USD pair is trading around 1.0385 level and we expect to see the price above 1.0440 area in the next few 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 1.0459 (161.8% of wave 1). To reduce the risk, we can use support at 1.0340 level as stop loss.
Support and Resistance
(S3) 1.0289 (S2) 1.0320 (S1) 1.0344 (PP) 1.0375 (R1) 1.0399 (R2) 1.0430 (R3) 1.0454
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0390 with stop loss 1.0340 and take profit at 1.0459 are recommended.