AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has continued trading upwards, corrective wave ii (coloured blue) ofthe bigger wave (v) (coloured red) has been developing. In the 1-hour chart we can see that the price was pushed towards the 0.8837 level yesterday, this move look corrective and that is why weare going to stay buyers while the price stays above the low at the 0.8757 level. Traders who want to join thelong should wait for a break above 0.8800 that should provide new fresh buying signal, and everyone who arealready long can move stops to break even. In accordance with our wave rules and taking into account that wave1 should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at0.8920 (50% of wave 1).
Alternate count: From the low at 0.8757 we already have enough sub-waves to call wave ii (coloured blue)completed, break below 0.8757 is going to switch us to sellers, so keep your eyes on this important level.
Support and Resistance
(S3) 0.8707 (S2) 0.8732 (S1) 0.8771 (PP) 0.8796 (R1) 0.8835 (R2) 0.8860 (R3) 0.8899
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upward movements. That is why longpositions at level 0.8800 with stop loss at 0.8756 and take profit at 0.8920 are recommended.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott Wave Analysis of AUD/USD for January 21, 2014 . Thanks for your support on Elliott Wave Analysis of AUD/USD for January 21, 2014
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