AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair was trading in a downward move, like we expected, developing corrective wave (A) (coloured green) of the bigger wave (E) (coloured orange). Yesterday during the early Asian session we could observe a descending movement towards the 1.0240 level. Therefore, during the European and New York sessions the AUD/USD pair continued trading in a bearish mood and the price reached 1.0230 level. At the moment this currency pair is trading around 1.0245 level and we are expecting to see it around 0.9800 level soon. In accordance with our wave rules and taking into account that the wave E retraces 61.8% of the wave C, we can define the potential targets measuring wave C, with Take Profit 1 at 0.9974 (50% of wave C) and Take Profit 2 at 0.9824 (61.8% of wave C). To reduce the risk, we can use resistance at 1.0375 level as Stop Loss. Also it is necessary to monitor the AUD Current Account, Cash Rate, RBA Rate Statement and U.S. Final Manufacturing PMI, ISM Manufacturing PMI, Construction Spending m/m, ISM Manufacturing Prices, Total Vehicle Sales data that can change the rate of the pair.
Support and Resistance
(S3) 1.0192 (S2) 1.0218 (S1) 1.0233 (PP) 1.0259 (R1) 1.0285 (R2) 1.0300 (R3) 1.0326
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0230 with Stop Loss 1.0375 ,Take Profit at 0.9974 and Take Profit 2 at 0.9824 are recommended.