AUD/USD Elliott Wave
Last week, the AUDUSD pair was trading upwards, just like we expected, corrective wave y (coloured blue) of the bigger wave (y) (coloured green) was developing. During Friday's Asian and European sessions we could observe an ascending movement from 0.9444 towards the 0.9484 level, and we can consider this move as the end of the first swing of the y wave (coloured blue). Therefore, during the early New York session this major pair did not manage to hold this levels and the price retraced back to the 0.9447 level. At the moment, the AUDUSD pair is trading around 0.9460 and we are expecting to see one more push higher, before the price turns lower when developing of the (y) wave ends. In accordance with our wave rules and taking into account that wave Y should retrace 100% of wave W, we can define the potential targets with measuring wave W with take profit at 0.9520 (100% of wave W). To reduce the risk, we can use invalidation point at the 0.9430 level as stop loss.
Support and Resistance
(S3) 0.9387 (S2) 0.9410 (S1) 0.9437 (PP) 0.9460 (R1) 0.9487 (R2) 0.9510 (R3) 0.9537
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 0.9470 with stop loss at 0.9430 and take profit at 0.9520 are recommended.