AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading in an upward move, developing corrective (4) wave (coloured purple) of the bigger wave 3 (coloured blue). Yesterday, during the European session the AUD/USD pair was trading in a sideways move between 1.0182 and 1.0237 levels. Therefore, during the early New York session this currency pair broke resistance at 1.0235 level and price reached a new daily high at 1.0272 level. We can consider this move as the end of the (4) wave (coloured purple). The AUD/USD pair is trading around 1.0245 level at the moment and we are expecting to see price around 1.0126 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 1.0126 (100% of wave 1) and Take Profit 2 at 1.0035 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0326 level as Stop Loss. Also it is necessary to monitor U.S. Non-Farm Employment Change, Unemployment Rate, and Average Hourly Earnings m/m data that can change the rate of the pair.
Support and Resistance
(S3) 1.0142 (S2) 1.0176 (S1) 1.0198 (PP) 1.0232 (R1) 1.0266 (R2) 1.0288 (R3) 1.0322
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0240 with Stop Loss 1.0326 , Take Profit at 1.0126, and Take Profit 2 at 1.0035 are recommended.