AUD/USD Elliott Wave
For the last few days the AUDUSD pair has been trading upwards, corrective wave b (coloured blue) of the bigger wave [b] (coloured black) has been developing. Yesterday, during the Asian and European session we could observe ascending movements from 0.9485 towards the 0.9541 level and we can consider this move as the end of the .b wave (coloured black) of the FLAT b wave (coloured blue). Therefore, during the New York session this major pair did not manage to hold this level and еру price has retraced back to 0.9509 level. At the moment the AUDUSD pair is trading around 0.9479 level and we want to see one more push higher towards 50% if the [a] wave before price turn lower again. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A we can define the potential targets with measuring wave A with take profit at 0.9588 (50% of wave A). To reduce the risk, we can use support point at 0.9420 level as stop loss.
Support and Resistance
(S3) 0.9436 (S2) 0.9461 (S1) 0.9493 (PP) 0.9518 (R1) 0.9550 (R2) 0.9575 (R3) 0.9607
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.9480 with stop loss at 0.9420 and take profit at 0.9588 are recommended.