AUD/USD Elliott Wave
The AUD/USD pair, has continued trading higher in the last few session just like we expected, impulsive wave [iii] (coloured black) of the bigger C wave (coloured blue) has been developing. In the 1-hour chart of the pair above, we can see that price reached our first targets at 0.9204, 100% of the (w) = (y), and currently we are looking at the 0.9255 level as next potential resistance and ending of the [iii] wave. Our strategy for today is going to be, looking to establish a selling positions at the break below the lower trend line (gray trend line on the chart). In accordance with our wave rules and taking into account that wave [iv] should retrace 50% of wave [iii], we can define the potential targets with measuring wave [iii] with take profit at 0.9090 (50% of wave [iii] ). The RSI indicator is showing divergence at the 1-hour chart, this is the first indication of the potential trend change in the market.
Support and Resistance
(S3) 0.9080, (S2) 0.9116, (S1) 0.9171, (PP) 0.9207, (R1) 0.9262, (R2) 0.9298, (R3) 0.9353.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9200 with stop loss at 0.9090 and take profit at 0.9280 are recommended.