AUD/USD Elliott Wave
Yesterday the AUD/USD pair was trading in an upward move like we expected, developing corrective wave (2) (coloured purple) of the bigger wave 3 (coloured blue). During the Asian and European sessions we could observe ascending movement towards the 1.0402 level and we can consider this move as the end of the wave (2) (coloured purple). Therefore, during the New York session the AUD/USD pair did not manage to hold this level and price started pushing lower when developing of the impulsive (3) wave start. This currency pair is trading around 1.0300 level at the moment and we are expecting to see price around 1.0185 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 (1.0473-1.0325-1.0402), with Take Profit at 1.0185 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.0400 level as Stop Loss. Also it is necessary to monitor AUD Cash Rate and RBA Rate Statement data that can change the rate of the pair.
Support and Resistance
(S3) 1.0288 (S2) 1.0317 (S1) 1.0335 (PP) 1.0364 (R1) 1.0393 (R2) 1.0411 (R3) 1.0440
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0290 with Stop Loss 1.0400 and Take Profit at 1.0185 are recommended.