AUD/USD Wave Analysis for October 25, 2012 Trend News

AUD/USD Elliott Wave

Since our last analysis the AUD/USD pair was trading in an upward move, corrective wave C (coloured blue) of the bigger wave (2) (coloured green) was developing.

Yesterday during the Asian and European sessions we could observe strong ascending movement from 1.0258 towards the 1.326 level. Therefore, during the New York session the

AUD/USD pair continued trading in a bullish mood and price reached a new daily high at 1.0365 level. Today this currency pair finished developing of the corrective C wave and we are expecting to see price lower when development of the impulsive (3) wave (starts).

In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1, with take profit at 1.0209 (100% of wave 1). To reduce the risk, we can use resistance at 1.0410 level as stop loss.



Support and Resistance

(S3) 1.0220 (S2) 1.0261 (S1) 1.0286 (PP) 1.0327 (R1) 1.0368 (R2) 1.0393 (R3) 1.0434

Trading Forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0355 with stop loss 1.0410 and take profit at 1.0209 are recommended.

The material has been provided by Instaforex Company - instaforex.com



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