AUD/USD Elliott Wave
Yesterday the AUD/USD pair was trading in a downward move, impulsive wave 5 (coloured blue) of the bigger wave (1) (coloured green) was developing. During the Asian and European sessions we could observe strong descending movement from 1.0338 towards the 1.0265 level. Therefore, during the early New York session the AUD/USD pair continued trading in a bearish mood reaching a 1.0235 level and we can consider this move as the end of the wave (1) (coloured green). At the moment this currency pair is developing corrective wave (2) and we are expecting to see price higher today. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1, with take profit at 1.0344 (61.8% of wave 1). To reduce the risk, we can use support at 1.0293 level as stop loss.
Support and Resistance
(S3) 1.0176 (S2) 1.0215 (S1) 1.0240 (PP) 1.0279 (R1) 1.0318 (R2) 1.0343 (R3) 1.0382
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0315 with stop loss 1.0293 and take profit at 1.0344 are recommended.