AUD/USD Elliott Wave
Last week the AUD/USD pair has started developing A wave (coloured blue). During the Friday's European session we could observe descending move toward the 1.0020 level. Therefore during the early New York session the AUD/USD pair continued pushing in a bearish mood and we could observe price reaching new daily low at the 1.0010 level. Today during the Asian session we could observe this major lower and currently price is around the 0.9980 level. We are expecting to see the price to retrace to 1.0100 soon. In accordance with our wave rules and taking into account that the wave B retraces 61.8% of the wave A, we can define the potential targets with Fibonacci retracement (1.0473-0.99761) with Take Profit 1 at 1.0224 (50% of wave A) and Take Profit 2 at 1.0283 (61.8% of wave A). The resistance level of 0.9950 can be used as Stop Loss.
Support and Resistance levels
(S3) 0.9973 (S2) 0.9999 (S1) 1.0014 (PP) 1.0039 (R1) 1.0065 (R2) 1.0080 (R3) 1.0105
Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 1.0000 with Stop Loss at 0.9950, Take Profit 1 at 1.0224 and Take Profit 2 at 1.281 are recommended.
The material has been provided by Instaforex Company - instaforex.com