AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has been trading downwards, just like we expected, corrective wave .iv (coloured green) of the bigger wave C (coloured blue) has been developing. During Wednesday's Asian and European sessions we could observe ascending movements from 0.9274 towards the 0.9337 level. Therefore, during the early New York session this major currency continued trading in the bullish mood and we could see the price at the new highs around 0.9355. We can consider this move as the end of the Flat B wave of .iv cycle (colorured green). At the moment, the AUDUSD pair is trading around 0.9252 and we are expecting to see one more push higher before the price turns around when developing of the (4) wave (coloured red) ends. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, we can define potential targets with measuring wave 4 with take profit at 0.9382 (123.6% of wave 4). To reduce the risk, we can use invalidation point at the 0.9180 level as stop loss.
Support and Resistance
(S3) 0.9229 (S2) 0.9253 (S1) 0.9290 (PP) 0.9314 (R1) 0.9351 (R2) 0.9375 (R3) 0.9412
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9270 with stop loss at 0.9180 and take profit at 0.9382 are recommended.