AUD/USD Elliott Wave Last week the AUD/USD par was moving upwards developing 1 and 2 wave (coloured blue). During the Friday's European session we could observe descending movement toward the 0.9820 level. We can consider this move as the end of the 2 wave (coloured blue). Therefore during the New York session the AUD/USD pair started pushing higher and price reached the 0.9940 level (new daily high). Today during the early Asian session we could observe 45 pips’ gap in this currency pair and the price reached a new high at the 1.0007 level. We can consider this move as the end of the 1 wave (coloured pink) of the bigger 3 wave (coloured blue). At the moment we are in the corrective 2 wave and we expect to see price around 0.9900 today. In accordance with our wave rules and taking into account that the wave 2 retraces 61.8% of the wave 1, we can define the potential targets Fibonacci retracement (0.9820 -1.0007) with Take Profit 1 at 0.9892 (61.8% of wave 1) and Take Profit 2 at 0.9861 (78.6% of wave 1). Resistance level at 1.0010 can be used as a Stop Loss point. Also it is necessary to monitor the U.S. FOMC Member Lockhart Speech data that can change the rate of the pair.
Support and Resistance Levels (S3) 0.9770 (S2) 0.9816 (S1) 0.9844 (PP) 0.9890 (R1) 0.9936 (R2) 0.9964 (R3) 1.0010
Trading Forecast Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why Short positions at level 0.9950 with Stop Loss at 1.0010, Take Profit 1 at 0.9892 and Take Profit 2 at 0.9861 are recommended.
Nicola Delic is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.