AUD/USD Elliott Wave Since our last analysis the AUD/USD pair has been trading downwards, just like we expected, corrective wave 2 (coloured blue) of the bigger wave (5) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0446 towards the 1.0496 level and we can consider this move as the end of the wave 1 (coloured blue). Therefore, during the early New York session this currency did not manage to hold this level and the price has retraced back to 1.0450 area. We can consider this movement as the end of the sub-wave (A) (coloured pink) of the 2 wave (coloured blue). At the moment the AUD/USD pair is trading around 1.0415 area and we expect to see the price back to yesterday’s high in the next few sessions. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0581 (161.8% of wave 1). To reduce the risk, we can use support at 1.0385 as stop loss.
Support and Resistance (S3) 1.0386 (S2) 1.0416 (S1) 1.0437 (PP) 1.0467 (R1) 1.0488 (R2) 1.0518 (R3) 1.0539
Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0420 with stop loss 1.0385 and take profit at 1.0581 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading downwards, just like we expected, corrective wave 2 (coloured blue) of the bigger wave (5) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0446 towards the 1.0496 level and we can consider this move as the end of the wave 1 (coloured blue). Therefore, during the early New York session this currency did not manage to hold this level and the price has retraced back to 1.0450 area. We can consider this movement as the end of the sub-wave (A) (coloured pink) of the 2 wave (coloured blue). At the moment the AUD/USD pair is trading around 1.0415 area and we expect to see the price back to yesterday’s high in the next few sessions. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0581 (161.8% of wave 1). To reduce the risk, we can use support at 1.0385 as stop loss.
Support and Resistance
(S3) 1.0386 (S2) 1.0416 (S1) 1.0437 (PP) 1.0467 (R1) 1.0488 (R2) 1.0518 (R3) 1.0539
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0420 with stop loss 1.0385 and take profit at 1.0581 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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