AUD/USD Elliott Wave
For the last few days the AUD/USD pair was trading in a downward move, developing impulsive wave 3 (coloured blue) of the bigger wave (3) (coloured green). During the Friday's Asian session we could observe ascending move towards the 1.0473 level and we can consider this move as end of the corrective wave 2 (coloured blue). Therefore, during the European and New York sessions the AUD/USD pair did not manage to hold this level and the price started pushing lower reaching a new daily low at 1.0365 level. Today during the early Asian session this currency pair continued trading in a bearish mood reaching a 1.0325 level and we can consider this move as an end of the impulsive wave (1) (coloured purple) of the bigger wave 3 (coloured blue). In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (1.0473-1.0325-1.0400), with Take Profit at 1.0185 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0474 level as Stop Loss. Also it is necessary to monitor U.S. ISM Manufacturing PMI and Fed Chairman Bernanke Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 1.0298 (S2) 1.0339 (S1) 1.0365 (PP) 1.0406 (R1) 1.0447 (R2) 1.0473 (R3) 1.0514
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0400 with Stop Loss 1.0474 and Take Profit at 1.0185 are recommended.