AUD/USD Elliott Wave
For the last couple of days, the AUD/USD pair has been trading downward, impulsive wave (v) (coloured red) of the bigger wave 1 (coloured blue) has been developing. In the 4-hour chart of this major pair, we can see that the move from the 0.9087 level (end of the (iv) wave) has been taking a form of the Ending Diagonal pattern, and inside this pattern we can see 4 out of 5 wave completed; so one more push lower early this week is going to be ideal to look for the fresh new short positions in this pair. In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets by measuring wave 4 with take profit at 0.8625 (161.8% of wave 4). To protect our capital, we can use the invalidation point at the 0.8890 level as our stop loss level.
Support and Resistance
(S3) 0.8520, (S2) 0.8589, (S1) 0.8636, (PP) 0.8705, (R1) 0.8752, (R2) 0.8821, (R3) 0.8868.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short position at level of 0.8730 with stop loss at 08890 and take profit at 0.8625 are recommended.
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