From the second half of the January, the AUD/USD pair has been trading upwards inside the (B) wave (coloured red) of the bigger wave [Y] (coloured blue). In the 4-hour chart of the pair above, we can see that we are currently in the C of (B) wave, that is taking a shape of an ending diagonal pattern. This week, we should see at least the end of the [iii] wave (coloured black), if not whole wave (B), and that is why we are going to look for potential buying opportunity at the next pullback. In accordance with our wave rules and taking into account that wave [iii] should extend 161.8% of wave [i], we can define the potential targets with measuring wave [i] with take profit at 0.9210 (161.8% of wave [i] ). To protect our buying position, we are going to use the low at the 0.9000 level as the stop loss point.
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.9100 with stop loss at 0.9000 and take profit at 0.9210 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
AUD/USD Elliott Wave
From the second half of the January, the AUD/USD pair has been trading upwards inside the (B) wave (coloured red) of the bigger wave [Y] (coloured blue). In the 4-hour chart of the pair above, we can see that we are currently in the C of (B) wave, that is taking a shape of an ending diagonal pattern. This week, we should see at least the end of the [iii] wave (coloured black), if not whole wave (B), and that is why we are going to look for potential buying opportunity at the next pullback. In accordance with our wave rules and taking into account that wave [iii] should extend 161.8% of wave [i], we can define the potential targets with measuring wave [i] with take profit at 0.9210 (161.8% of wave [i] ). To protect our buying position, we are going to use the low at the 0.9000 level as the stop loss point.
Support and Resistance
(S3) 0.8977, (S2) 0.9014, (S1) 0.9074, (PP) 0.9111, (R1) 0.9171, (R2) 0.9208, (R3) 0.9268.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.9100 with stop loss at
0.9000 and take profit at 0.9210 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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