AUD/USD Elliott Wave
Since our last analyses, the AUDUSD pair has been trading upwards, just like we expected, impulsive wave i (coloured blue)of the bigger wave [a] (coloured black) has been developing. Yesterday, during the early Asian session, we could observe a descending movement from 0.9309 towards the 0.9278 level, Therefore, during the European and Asian sessions, this currency did not manage to hold around the lows, and the price retraced back to the 0.9372 level. At the moment, the AUDUSD pair is trading around 0.9309, and we should see more upward movements in the next sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9500 (161.8% of wave A). To reduce the risk, we can use support point at the 0.9280 level as stop loss.
Support and Resistance
(S3) 0.9209, (S2) 0.9243, (S1) 0.9301, (PP) 0.9335, (R1) 0.9393, (R2) 0.9427, (R3) 0.9485.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9320 with stop loss at 0.9280 and take profit at 0.9500 are recommended.