AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair was trading in a downward move, developing impulsive (3) wave (coloured purple) of the bigger wave 3 (coloured blue). Yesterday during the Asian and European sessions we could observe descending movement towards the 1.0200 level. Therefore, during the early New York session this currency pair did not manage to hold this level and price started trading in a sideways move in area between 1.0200 and 1.0235 level. Today during the Asian session AUD/USD reached 1.0182 level and we can consider this move as the end of the wave (3). 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 at 1.0115 (100% of wave 1) and Take Profit 2 at 1.0023 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.0300 level as Stop Loss. Also it is necessary to monitor AUD Building Approvals m/m, Retail Sales m/m, and U.S. Unemployment Claims, Factory Orders m/m, FOMC Meeting Minutes data that can change the rate of the pair.
Support and Resistance
(S3) 1.0156 (S2) 1.0183 (S1) 1.0200 (PP) 1.0227 (R1) 1.0254 (R2) 1.0271 (R3) 1.0298
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0260 with Stop Loss 1.0300, Take Profit at 1.0115, and Take Profit 2 at 1.0023 are recommended.