AUD/USD Elliott Wave
Last week, the AUD/USD pair was trading upwards, just like we had expected, corrective wave C (coloured blue) of the bigger (B) wave (coloured red) has been developing. In the 1-hour chart above, we can see that we just completed the (iii) of C wave with a test of the 0.9131 level, and we are going to look today for one more push higher in the final (v) wave (coloured green) while price remains above the 0.8968 level (short term invalidation point). In accordance with our wave rules and taking into account that wave (v) which should extend 61.8% of wave (iii), we can define the potential targets with measuring wave (iii) with take profit at 0.9143 (61.8% of wave (iii)). Since move from the 0.9131 level look to deep, we must have some alternate view ready. Alternate count: Wave (B) is already over at the 0.9131 level, and if price breaks below the 0.8968 level, we are going to look for more downside movements towards the 0.8895 - 0.8837 area next (50-61.8% of the bigger upward cycle from 0.8653 level).
Support and Resistance (S3) 0.8970, (S2) 0.9015, (S1) 0.9041, (PP) 0.9086, (R1) 0.9112, (R2) 0.9157, (R3) 0.9183.
Trading forecast
Proceeding from the Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why, long positions at the level of 0.9050 with stop loss at 0.8968 and take profit at 0.9143 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 March 10, 2014 . Thanks for your support on Elliott Wave Analysis of AUD/USD for March 10, 2014
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