AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading in an upward move, developing corrective wave (y) (coloured purple) of the bigger wave 4 (coloured blue). During the Asian and European sessions we could observe aggressive ascending movement from 1.0183 towards 1.0262 level. Therefore, during the New York session the AUD/USD pair started pushing lower and price retrace back to 1.0210 level. This currency pair is trading around 1.0275 level at the moment and we are expecting to see price lower when developing of the final impulsive 5 wave (coloured blue) starts. 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 1.0108 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0340 level as Stop Loss. Also it is necessary to monitor AUD Employment Change, Unemployment Rate, MI Inflation Expectations and U.S. Trade Balance, Unemployment Claims, Import Prices m/m, FOMC Member Stein Speaks, and Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 1.0146 (S2) 1.0177 (S1) 1.0177 (PP) 1.0226 (R1) 1.0257 (R2) 1.0276 (R3) 1.0306
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0260 with Stop Loss 1.0340 and Take Profit at 1.0108 are recommended.