AUD/USD Elliott Wave
For the last few days the AUD/USD pair has been trading upwards, corrective wave A (coloured blue) of the bigger wave [4] (coloured red) has been developing. Yesterday, during the Asian and European session we could observe ascending movement from 0.9085 towards the 0.9178 level. Therefore, during the New York session this currency did not manage to hold this levels and price has retraced back to 0.9122 level. At the moment the AUD/USD pair is trading around 0.9158 level and we are expecting to see price higher in the next few days.In accordance with our wave rules and taking into account that wave 4 should retrace 38.2% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9277 (38.2% of wave 3). To reduce the risk, we can use support point at 0.9050 level as stop loss.
Support and resistance
(S3) 0.8975 (S2) 0.9023 (S1) 0.9083 (PP) 0.9131 (R1) 0.9191 (R2) 0.9239 (R3) 0.9299
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9170 with stop loss at 0.9050 and take profit at 0.9277 are recommended.