AUD/USD Elliott Wave
After a week in the sideways mood, the AUD/USD pair has finally broke resistance and we could see a clear start of the final 5 wave (coloured blue) of the bigger (3) wave (coloured green). During the Thursday's European session we could observe ascending movement from 1.0362 towards the 1.0412 area. Therefore, during the New York session this major currency has continued to trade in a bullish mood and we could see the price reaching a new high at 1.0457 level. At the moment the AUD/USD pair is trading around 1.0433 and we expect to see the price reaching 1.0500 resistance very soon. 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 1.0500 (161.8% of wave 1). To reduce the risk, we can use support at 1.0390 level as stop loss.
Alternation: Yesterday’s move was very sharp and we may consider Thursday’s high as the end of the 5 wave (coloured blue), and if this count is right you must be prepared for the corrective wave 4 wave.
Support and Resistance
(S3) 1.0287 (S2) 1.0324 (S1) 1.0382 (PP) 1.0419 (R1) 1.0477 (R2) 1.0514 (R3) 1.0572
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0440 with stop loss 1.0390 and take profit at 1.0500 are recommended.