AUD/USD Elliott Wave The whole week the AUDUSD pair has been trading upwards, just like we expected, corrective wave (y) (coloured green) of the bigger wave [5] (coloured black) has been developing. During Thursday's Asian and European sessions we could observe ascending movements from 0.9365 towards the 0.9414 level and we can consider this move as the end of the a wave (coloured blue). Therefore, during the early New York session, when developing of the wave b started, this major currency cross retraced back to 0.9371, before the price turned higher and reached the 0.9404 level. At the moment, the AUDUSD pair is trading around 0.9445 and we are looking to see more bullish movements in the next few sessions. In accordance with our wave rules and taking into account that wave Y should retrace 123.6% of wave X, we can define the potential targets with measuring wave X with take profit at 0.9542 (123.6% of wave A). To reduce the risk, we can use resistance point at the 0.9400 level as stop loss. Support and Resistance (S3) 0.9319 (S2) 0.9343 (S1) 0.9367 (PP) 0.9391 (R1) 0.9415 (R2) 0.9439 (R3) 0.9463 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9450 with stop loss at 0.9400 and take profit at 0.9542 are recommended.
