AUD/USD Elliott Wave Yesterday during the Asian and European session the AUD/USD pair was trading in a downward move developing corrective wave (4) of the bigger 3 wave (coloured pink). During the European session we could observe a descending movement toward the 1.0057 level. We can consider this move as end of the (4) wave. Therefore during the New York session the AUD/USD pair started pushing higher and price reached a new high at 1.0141. Today during the Asian session the price continued trading in a bullish mood and price reached the 1.0155 level. At the moment we can observe the end of the 3 wave (coloured pink) and we are expecting to see the price lower today. In accordance with our wave rules and taking into account that the wave 4 retraces 38.2% of the wave 1, we can define the potential targets with Fibonacci retracements (0.9849-1.0145) with Take Profit 1 at 1.0077 (23.6% of wave 3) and Take Profit 2 at 1.0033 (38.2% of wave 3). Resistance at 1.0170 can be used as a Stop Loss point. Also it is necessary to monitor the U.S. Building Permits, Housing Starts and G20 Meetings data that can change the rate of the pair.
Support and Resistance Levels (S3) 1.0021 (S2) 1.0054 (S1) 1.0074 (PP) 1.0106 (R1) 1.0139 (R2) 1.0159 (R3) 1.0191
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 1.0110 with Stop Loss at 1.0170 Take Profit 1 at 1.0077 and Take Profit 2 at 1.0033 are recommended.
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