AUD/USD Elliott Wave Since our last analyses the AUD/USD pair was trading upwards, just like we expected, impulsive wave 1 (coloured blue) of the bigger wave (5) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0385 towards the 1.0430 level and we can consider this move as the end of the sub-wave (1) (coloured pink) of the 1 wave (coloured blue). Therefore, during the New York session this currency has continued trading in a bullish mood and the price reached a new high at 1.0478 level (end of the wave (3) (coloured pink). At the moment the AUD/USD pair is trading around 1.0459 area and we expect to see the price lower when development of the corrective wave 2 (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0440 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0510 as stop loss.
Support and Resistance (S3) 1.0367 (S2) 1.0384 (S1) 1.0394 (PP) 1.0412 (R1) 1.0429 (R2) 1.0439 (R3) 1.0457
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0490 with stop loss 1.0510 and take profit at 1.0440 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair was trading upwards, just like we expected, impulsive wave 1 (coloured blue) of the bigger wave (5) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0385 towards the 1.0430 level and we can consider this move as the end of the sub-wave (1) (coloured pink) of the 1 wave (coloured blue). Therefore, during the New York session this currency has continued trading in a bullish mood and the price reached a new high at 1.0478 level (end of the wave (3) (coloured pink). At the moment the AUD/USD pair is trading around 1.0459 area and we expect to see the price lower when development of the corrective wave 2 (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0440 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0510 as stop loss.
Support and Resistance
(S3) 1.0367 (S2) 1.0384 (S1) 1.0394 (PP) 1.0412 (R1) 1.0429 (R2) 1.0439 (R3) 1.0457
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0490 with stop loss 1.0510 and take profit at 1.0440 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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