FX.co ★ AUD/USD Weekly Wave Analysis

AUD/USD Elliott Wave
From the start of the October the AUD/USD pair was trading in an upward move, corrective wave (Y) (coloured red) of the bigger D wave (coloured purple) was developing. During the Friday's European session we could observe ascending movement from 1.0517 toward the 1.0576 level and we can consider this move as the end of the D wave. Therefore, during the New York session the AUD/USD pair did not manage to hold this level and the price started pushing lower reaching a new session low at 1.0555 level. At the moment this currency pair is trading around 1.0538 level and we are expecting to see the price below 0.9900 in the next few weeks. In accordance with our wave rules and taking into account that the wave E should retrace 61.8% of the wave C, we can define the potential targets with measuring wave C with take profit at 0.9798 (61.8% of wave C). To reduce the risk we can use resistance at 1.0800 level as stop loss.

Support and Resistance
(S3) 1.0457 (S2) 1.0483 (S1) 1.0524 (PP) 1.0550 (R1) 1.0591 (R2) 1.0617(R3) 1.0658

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0500 with stop loss 1.0800 and take profit at 0.9798 are recommended.