EUR/AUD Elliott Wave
For the last few days the EUR/AUD pair was trading in a sideways move, corrective (4) wave (coloured green) of the bigger wave (c) (coloured orange) was developing. During the Asian session we could observe descending movement towards the 1.2459 level and we can consider this move as the end of the D wave (coloured blue). Therefore, during the European and New York sessions the EUR/AUD pair did not manage to hold this level and the price pushed higher reaching 1.2526. We can consider this move as the end of the E wave (coloured blue) of the bigger (4) wave (coloured green). Today this currency pair is trading around 1.2495 level and we are expecting to see the price around 1.2419 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 1 at 1.2419 (100% of wave 1) and take profit 2 at 1.2362 (100% of wave 1). To reduce the risk, we can use resistance at 1.2526 level as stop loss.


Support and Resistance
(S3) 1.2425 (S2) 1.2451 (S1) 1.2467 (PP) 1.2493 (R1) 1.2519 (R2) 1.2535 (R3) 1.2561

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.2480 with stop loss 1.2526, take profit 1 at 1.2419, and take profit 2 at 1.2362 are recommended.