AUD/USD Elliott Wave
For the last couple of days, the AUD/USD pair has been trading downwards, we looked first at this pullback as the FLAT correction inside the (ii) wave, but since our short term invalidation gave up according to our rules, we have slightly adjusted our primary elliott wave count for the pair. In the 1-hour char, we can see that we are looking at the move from 0.8659 as completed up cycle at the 0.9065 highs. This downside move develop the 3-3-5 pattern that we call FLAT correction, and while price manage to stay below the 0.9065 we are going to focus on more downward movements inside the wave [c] (coloured black) of the bigger wave B (coloured blue).In accordance with our wave rules and taking into account that wave B should extend 50% of wave A, we can define the potential targets with measuring wave A with take profit at 0.8857 (50% of wave A).
Support and Resistance
(S3) 0.8926, (S2) 0.8957, (S1) 0.9013, (PP) 0.8980, (R1) 0.9011, (R2) 0.9034, (R3) 0.9065.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.8970 with stop loss at 0.9065 and take profit at 0.8857 are recommended.