AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading downwards, impulsive wave 3 (coloured blue) of the bigger wave (3) (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 0.9571 towards the 0.9441 level. Therefore, during the late New York session this major currency did not manage to hold this level and the price has retraced back to 0.9515 level (NY sessions high). At the moment the AUD/USD pair is at the end of the corrective wave 4 (coloured blue) and we expect to see one more push lower when developing of the wave 5 (coloured blue) starts. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9409 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9565 level as stop loss.
Support and Resistance
(S3) 0.9290 (S2) 0.9364 (S1) 0.9424 (PP) 0.9498 (R1) 0.9558 (R2) 0.9632 (R3) 0.9692
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9500 with stop loss at 0.9565 and take profit at 0.9409 are recommended.