AUD/USD Elliott Wave
For the last 2 days the AUD/USD pair was trading in a upward move developing impulsive wave 3 (coloured blue) of the bigger wave (3) (coloured green). Yesterday during the Asian and European, session we could observe a strong ascending move towards the 1.0420 level. Therefore, during the second half of the New York session, the AUD/USD pair did not manage to hold this level and the price started trading in a sideways move. Presently we can observe the developing of the impulsive wave (3) and we are expecting to see price higher today. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0145-1.0443-1.0176) with Take Profit 1 at 1.0650 (138.2% of wave 1) and Take Profit 2 at 1.0731(161.8% of wave 1). Support at 1.0400 can be used as Stop Loss. Also it is necessary to monitor the
U.S. Advance GDP q/q, Advance GDP Price Index q/q and Revised UoM Consumer Sentiment data that can change the rate of the pair.
Support and Resistance
(S3) 1.0239 (S2) 1.0289 (S1) 1.0320 (PP) 1.0370 (R1) 1.0420 (R2) 1.0451 (R3) 1.0501
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0450 with Stop Loss 1.0400 Take Profit 1 at 1.0650 and Take Profit 2 at 1.0731 are recommended.