EUR/AUD Elliott Wave
For the last few days the EUR/AUD pair was trading in a downward move, corrective (C) wave (coloured red) of the bigger wave 2 (coloured purple) was developing. Yesterday during the Asian and European sessions we could observe descending movement from 1.2345 towards 1.2250 level and we can consider this move as the end of the 2 corrective wave (coloured purple). Therefore, during the early New York session when development of the impulsive wave (1) (coloured green) started the EUR/AUD pair reached a new sessions high at 1.2292 level. Today this major pair finished 1 impulsive wave (coloured blue) at 1.2325 level and we are expecting to see the price higher when development of the 3 impulsive wave starts. 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 measuring wave 1 with take profit at 1.2396 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.2243 level as stop loss.


Support and Resistance
(S3) 1.2186 (S2) 1.2225 (S1) 1.2249 (PP) 1.2289 (R1) 1.2328 (R2) 1.2352 (R3) 1.2392

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.2315 with stop loss 1.2243 and take profit at 1.2396 are recommended.