AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair was trading in a downward move, developing impulsive 3 wave (colured blue) of the bigger wave (3) (coloured green) like we expected. During the Asian and European sessions, we could observe a descending movement towards the 1.0405 level where this major pair found support and price pushed higher in the early New York session. Therefore, during the second half of the NY session the AUD/USD pair did not manage to hold this level and the price started pushing lower reaching 1.0382 level. At the moment, the price is trading around 1.0360 level and we are expecting to see continuation of the bearish mood today. 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 (1.0518-1.0386-1.044), with Take Profit 1 at 1.0229 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.0386 level as Stop Loss. Also it is necessary to monitor U.S. New Home Sales and Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 1.0328 (S2) 1.0360 (S1) 1.0379 (PP) 1.0410 (R1) 1.0442 (R2) 1.0461 (R3) 1.0492
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0345 with Stop Loss 1.0386 and Take Profit at 1.0229 are recommended.