EUR/AUD Elliott Wave
For the last few days the EUR/AUD pair was trading in an upward move, corrective wave (2) (coloured green) of the bigger wave (c) (coloured orange) is developing. Yesterday during the Asian and European sessions we could observe strong ascending movement from 1.2621 towards the 1.2667 level. Therefore, during the early New York session the EUR/AUD pair continued trading in a bullish mood reaching a new high at 1.2673 level. We can consider this move as the end of the corrective wave (2) (coloured green). This currency pair is trading around 1.2650 level at the moment and we are expecting to see price lower soon. 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 measuring wave 1, with Take Profit at 1.2458 (161.8% of wave 1). To reduce the risk, we can use resistance at 1.2675 level as Stop Loss.
Support and Resistance
(S3) 1.2588 (S2) 1.2610 (S1) 1.2623 (PP) 1.2644 (R1) 1.2666 (R2) 1.2679 (R3) 1.2700
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.2645 with Stop Loss 1.2675 and Take Profit at 1.2458 are recommended.