AUD/USD Elliott Wave
Yesterday the AUD/USD pair was trading in a downward move, developing impulsive 5 wave (coloured blue) of the bigger (3) wave (coloured green). During the early Asian session we could observe strong ascending movement from 1.0190 towards the 1.0246 level. Therefore, during the European and New York sessions the AUD/USD pair did not manage to hold this level and price started pushing lower reaching a new daily low at 1.0174 level. This currency pair is trading around 1.0215 level at the moment and we are expecting to see price lower for the next few days. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 1.0068 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0250 level as Stop Loss. Also it is necessary to monitor AUD Westpac Consumer Sentiment and U.S. FOMC Member Yellen Speaks, 10 Year Bond Auction, Beige Book data that can change the rate of the pair.
Support and Resistance
(S3) 1.0137 (S2) 1.0164 (S1) 1.0181 (PP) 1.0209 (R1) 1.0236 (R2) 1.0253 (R3) 1.0281
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0200 with Stop Loss 1.0250 and Take Profit at 1.0068 are recommended.