AUD/USD Elliott Wave
Since our last analyses, the AUDUSD pair has continued trading downwards, corrective wave c (coloured blue) of the bigger wave (x) (coloured green) has started developing. Yesterday, during the early Asian session we could observe small ascending movement from 0.9620 towards the 0.9670 level, and we can consider this move as the end of the wave b (coloured blue). Therefore, during the European and New York sessions this commodity pair did not manage to hold the highs and the price dropped to the 0.9570 level. At the moment, the AUDUSD pair is trading around 0.9589, and we are expecting to see one more push lower to complete the (x) wave. In accordance with our wave rules and taking into account that wave x should retrace 50% of wave w, we can define the potential targets with measuring wave w with take profit at 0.9512 (50% of wave w). To reduce the risk, we can use resistance point at the 0.9650 level as stop loss.
Support and Resistance
(S3) 0.9472 (S2) 0.9521 (S1) 0.9571 (PP) 0.9620 (R1) 0.9670 (R2) 0.9719 (R3) 0.9769
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9580 with stop loss at 0.9650 and take profit at 0.9515 are recommended.