FX.co ★ AUD/USD Weekly Wave Analysis

AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading in an upward move just as we expected, developing final corrective (C) wave (coloured blue) of the bigger wave (B) (coloured green). During the Asian and European sessions we could observe an ascending movement from 1.0320 towards the 1.0382 (new daily high) level. Therefore, during the New York session, the AUD/USD pair continued trading in a bullish mood and the price reached 1.0448 level. At the moment we can observe the end of the (B) wave (coloured green) and we are expecting to see the price lower for the next few days when the development of (C) wave (coloured green) starts. In accordance with our wave rules and taking into account that the wave C retraces 161.8% of the wave A, we can define the potential targets with Fibonacci extensions (1.0612-1.0166-1.0510) with Take Profit at 0.9807 (100% of wave A). Resistance at 1.0600 can be used as Stop Loss.
Support and Resistance
(S3) 1.0228 (S2) 1.0276 (S1) 1.0354 (PP) 1.0402 (R1) 1.0480 (R2) 1.0528 (R3) 1.0606
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at the level of 1.0450 with Stop Loss at 1.0600 and Take Profit at 0.9807 are recommended.