AUD/USD Elliott Wave Since our last analyses the AUD/USD pair was trading downwards, corrective wave (4) (coloured pink) of the bigger wave 1 (coloured blue) was developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0477 towards the 1.0440 level and we can consider this move as the end of the corrective (4) wave (coloured pink). Therefore, during the New York session when development of the final (5) wave starts this currency has pushed higher and we could observe price reaching a new session’s high at 1.0467 level. At the moment the AUD/USD pair is trading around 1.0471 and we expect to see small bearish movement when development of the 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 1.0428 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0510 as stop loss.
Support and Resistance (S3) 1.0360 (S2) 1.0102 (S1) 1.0419 (PP) 1.0448 (R1) 1.0478 (R2) 1.0507 (R3) 1.0537
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0495 with stop loss 1.0510 and take profit at 1.0428 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 downwards, corrective wave (4) (coloured pink) of the bigger wave 1 (coloured blue) was developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0477 towards the 1.0440 level and we can consider this move as the end of the corrective (4) wave (coloured pink). Therefore, during the New York session when development of the final (5) wave starts this currency has pushed higher and we could observe price reaching a new session’s high at 1.0467 level. At the moment the AUD/USD pair is trading around 1.0471 and we expect to see small bearish movement when development of the 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 1.0428 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0510 as stop loss.
Support and Resistance
(S3) 1.0360 (S2) 1.0102 (S1) 1.0419 (PP) 1.0448 (R1) 1.0478 (R2) 1.0507 (R3) 1.0537
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0495 with stop loss 1.0510 and take profit at 1.0428 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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