AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading in a downward move, as we expected, developing impulsive (3) wave (coloured green) of the bigger wave (C) (coloured orange). Yesterday during the European session, we could observe descending movement from 1.0473 towards the 1.0429 level. Therefore, during the early New York session the AUD/USD pair started pushing higher reaching a 1.0496 levelб and we can consider this move as the end of the corrective (2) wave (coloured green). At the moment, this major pair is trading around 1.0400 level and we are expecting to see price around 1.0200 soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (1.0624-1.0409-1.0496), with Take Profit 1 at 1.0199 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.0500 level as Stop Loss. Also it is necessary to monitor the U.S. Unemployment Claims, Flash Manufacturing PMI, FOMC Member Lockhart Speaks, Philly Fed Manufacturing Index data that can change the rate of the pair.
Support and Resistance
(S3) 1.0386 (S2) 1.0416 (S1) 1.0434 (PP) 1.0464 (R1) 1.0494 (R2) 1.0512 (R3) 1.0542
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0380 with Stop Loss 1.0500 and Take Profit at 1.0199 are recommended.