AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, final sub-wave C (coloured blue) of the bigger wave [2] (coloured red) has finished developing. During the Thursday's Asian and European sessions we could observe strong ascending movement from 0.9428 towards the 0.9585 level. Therefore, during the New York session this major pair has continued trading in a bullish mood and the price has reached a new high at 0.9664. We can consider this move as the end of the corrective wave [2] (coloured red). At the moment the AUD/USD pair is trading around 0.9600 level and we expect to see the price lower for the next few days. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9100 (161.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9680 level as stop loss.
Support and Resistance
(S3) 0.9264 (S2) 0.9346 (S1) 0.9493 (PP) 0.9575 (R1) 0.9722 (R2) 0.9804 (R3) 0.9951
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9550 with stop loss at 0.9680 and take profit at 0.9100 are recommended.