AUD/USD Elliott Wave
For the last few days the AUDUSD pair has been trading downwards, corrective wave [4] (coloured black) of the bigger wave A (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9424 towards the 0.9364 level. Therefore, during the early New York session this major currency did not manage to hold this level and the price has retraced back to 0.9412 level. At the moment the AUDUSD pair is trading around 0.9352 and we are expecting to see the price higher when development of the wave [5] (coloured black) starts. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.9582 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 0.9220 level as stop loss.
Support and Resistance
(S3) 0.9292 (S2) 0.9328 (S1) 0.9358 (PP) 0.9394 (R1) 0.9424 (R2) 0.9460 (R3) 0.9490
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.9285 with stop loss at 0.9220 and take profit at 0.9582 are recommended.