FX.co ★ AUD/USD weekly Elliott Wave forecast

AUD/USD Elliott Wave
After almost a year in a down trend, the AUDUSD pair has completed the (A) cycle (coloured blue) of the bigger wave [Y] (coloured purple) in early August. For the last few weeks we are observing a corrective movements that we fit inside the first leg A (coloured red) of the (B) wave, and when this wave A ends this week we are expecting to see 50 to 61.8% retracements of the cycle from 0.8850 area. We can define the potential targets with measuring wave A with take profit at 0.9205 (50% of wave A). To reduce the risk, we can use invalidation point at 0.9650 level as stop loss.

Short-term view: We are still inside the (c) of A wave, so we should see one more push higher from 0.9300 towards the 0.9600 and only than we should be looking for a drop to 0.9200 level.

Support and Resistance
(S3) 0.9207 (S2) 0.9270 (S1) 0.9332 (PP) 0.9395 (R1) 0.9457 (R2) 0.9520 (R3) 0.9582

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.9600 with stop loss at 0.9650 and take profit at 0.9205 are recommended.