AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading upwards, corrective wave (C) (coloured green) of the bigger wave 2 (coloured blue) has finished developing. During the Friday's Asian and Europeans sessions we could observe small descending movement from 1.0278 towards the 1.0242 level and we can consider this move as the end of the sub-wave(B) (coloured green). Therefore, during the New York session this major currency did not manage to hold this level and the price has retraced all the way to 1.0323 level. We can consider this move as the end of the final (C) wave of the wave 2 (coloured blue). At the moment the AUD/USD pair is trading around 1.0251 and we expect to see the price higher for the end of the wave (2) (coloured green). In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0292 (61.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0220 level as stop loss.
Support and Resistance
(S3) 1.0182 (S2) 1.0212 (S1) 1.0263 (PP) 1.0293 (R1) 1.0344 (R2) 1.0374 (R3) 1.0425
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0255 with stop loss at 1.0220 and take profit at 1.0292 are recommended.