AUD/USD Elliott Wave
Since our last analyses, the AUDUSD pair has continued trading lower, corrective wave C (coloured blue) of the bigger wave (x) (coloured green) has finished developing. Yesterday, during the Asian and European sessions, we could observe an ascending movement from 0.9457 towards the 0.9514 level. Therefore, during the New York session, this major pair did not manage to hold this level and the price dropped to the new low at the 0.9441 level. We can consider this move as the end of the (x)/[a] wave. At the moment, the AUDUSD pair is trading around the 0.9487 level, and we should see more upward movements in the next few sessions. In accordance with our wave rules and taking into account that wave y should retrace 100% of wave y, we can define the potential targets with measuring wave w with take profit at 0.9912 (100% of wave w). To reduce the risk, we can use support point at the 0.9430 level as stop loss.
Support and Resistance (S3) 0.9370, (S2) 0.9406, (S1) 0.9444, (PP) 0.9480, (R1) 0.9518, (R2) 0.9554, (R3) 0.9592.
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 0.9500 with stop loss at 0.9430 and take profit at 0.9912 are recommended.
