AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, corrective wave c (coloured green) of the bigger wave 4 (coloured blue) has finished developing. Yesterday, during the Asian and half European session we could observe ascending movement from 0.9245 towards the 0.9344 level and we can consider this movement as the end of the corrective wave 4 (coloured blue). Therefore, during the early New York session this major currency did not manage to hold this levels and price has dropped to the new daily low at 0.9217. We can consider this move as the end of the sub-wave 1 (coloured green) of the final wave 5 (coloured blue). At the moment the AUD/USD pair is trading around 0.9290 level and we are expecting to see price lower for the next few days. 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 0.9023 (61.8% of wave 3). To reduce the risk, we can use resistance point at 0.9350 level as stop loss.
Support and Resistance
(S3) 0.9118 (S2) 0.9176 (S1) 0.9227 (PP) 0.9285 (R1) 0.9336 (R2) 0.9394 (R3) 0.9445
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9265 with stop loss at 0.9350 and take profit at 0.9023 are recommended.