AUD/USD Elliott Wave Since our last analysis the AUD/USD pair has continued trading downwards, just like we expected, impulsive wave 3 (coloured blue) of the bigger wave [3] (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9437 towards the 0.9555 level and we can consider this move as the end of the sub-wave 2 of the impulsive wave 3 (coloured blue). Therefore, when development of the sub-wave 3 starts this major currency did not manage to hold this level and the price has dropped to 0.9260 level. At the moment the AUD/USD pair is at the end of the sub-wave 3 and we expect to see the continuation of the bearish movement when development of the corrective sub-wave 4 ends. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9095 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9438 level as stop loss. Support and Resistance (S3) 0.8933 (S2) 0.9108 (S1) 0.9205 (PP) 0.9380 (R1) 0.9477 (R2) 0.9652 (R3) 0.9749 Trading forecast Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9319 with stop loss at 0.9438 and take profit at 0.9095 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 continued trading downwards, just like we expected, impulsive wave 3 (coloured blue) of the bigger wave [3] (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9437 towards the 0.9555 level and we can consider this move as the end of the sub-wave 2 of the impulsive wave 3 (coloured blue). Therefore, when development of the sub-wave 3 starts this major currency did not manage to hold this level and the price has dropped to 0.9260 level. At the moment the AUD/USD pair is at the end of the sub-wave 3 and we expect to see the continuation of the bearish movement when development of the corrective sub-wave 4 ends. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9095 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9438 level as stop loss.
Support and Resistance
(S3) 0.8933 (S2) 0.9108 (S1) 0.9205 (PP) 0.9380 (R1) 0.9477 (R2) 0.9652 (R3) 0.9749
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9319 with stop loss at 0.9438 and take profit at 0.9095 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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