AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair was trading in a downward move, like we expected, developing impulsive (3) wave (coloured purple) of the bigger wave 3 (coloured blue). During the Asian and the European sessions, we could observe a descending movement from 1.0375 towards the 1.0290 level. Therefore, during the early New York session, the AUD/USD pair continued trading in a bearish mood and the price reached a new daily low at 1.0250 level. At the moment, this currency pair is trading around 1.0210 level and we are expecting to see the price higher today when development of the corrective wave (4) (coloured purple) starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 1.0246 (100% of wave 1). To reduce the risk, we can use support at 1.0150 level as Stop Loss. Also it is necessary to monitor AUD Trade Balance, HIA New Home Sales m/m, AIG Services Index and U.S. ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 1.0173 (S2) 1.0220 (S1) 1.0249 (PP) 1.0297 (R1) 1.0344 (R2) 1.0373 (R3) 1.0421
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0170 with Stop Loss 1.0150 and Take Profit at 1.0246 are recommended.