AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair was trading in a downward move, developing corrective wave E (coloured orange). Yesterday during the European and New York sessions we could observe a descending movement from 1.0544 towards the 1.0435 level and we can consider this move as the beginning of the impulsive 3 wave of the bigger wave (A) (coloured green). At the moment the AUD/USD pair is trading around 1.0420 and we are expecting to see price lower today. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0613-1.0410-1.0544) with Take Profit 1 at 1.0336 (100% of wave 1) and Take Profit 2 at 1.0211 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.0445 level as Stop Loss.
Support and Resistance
(S3) 1.0364 (S2) 1.0406 (S1) 1.0432 (PP) 1.0474 (R1) 1.0516 (R2) 1.0542 (R3) 1.0584
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0410 with Stop Loss 1.0445, Take Profit 1 1.0336, and Take Profit 2 1.0211 are recommended.