AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has continued trading upwards, just like we expected, corrective wave C (coloured blue) of the bigger wave (B) (coloured green) has been developing. During the Monday's Asian and European sessions we could observe strong ascending movement from 1.0271 towards the 1.0320 level. Therefore, during the New York session this major pair has continued to trade with a bullish mood and we could observe the price reaching a new high at 1.0357 level. At the moment the AUD/USD pair is trading around 1.0350 area and we expect to see a long bearish move when development of wave (C) (coloured green) starts. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0026 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0500 level as stop loss.
Support and Resistance
(S3) 1.0210 (S2) 1.0241 (S1) 1.0295 (PP) 1.0326 (R1) 1.0380 (R2) 1.0411 (R3) 1.0465
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why long positions at level 1.0400 with stop loss at 1.0500 and take profit at 1.0026 are recommended.