AUD/USD Elliott Wave
The AUD/USD pair, has been trading aggressively higher for the last few days, wave (a) (coloured green) of the bigger wave [a] (coloured black) has been developing. In the 1-hour chart of the pair above, we can see that there is enough swings to call the (a) wave, that is developing from the 0.8889 level as already complete cycle, so we are going to look for a corrective pullback towards the 50% of the (a) wave length as our fresh buying signal in the pair. In accordance with our wave rules and taking into account that wave (c) should extend 100% of wave (a), we can define the potential targets with measuring wave (a) with take profit at 0.8975 (100% of wave (a)).To reduce the risk, we can use support point at the 0.8880 level as stop loss. alternate count: we are still inside the (a) wave, and if price make a new high we are going to look for the 0.9050 region as our resistance area. Our strategy stay the same even for this scenario, buying the (b) wave pullback at the 50% drop with a stop at 0.8880 level/
Support and Resistance
(S3) 0.8886, (S2) 0.8911, (S1) 0.8947, (PP) 0.8972, (R1) 0.9008, (R2) 0.9033, (R3) 0.9069.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.8975 with stop loss at 0.8880 and take profit at 0.8975 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 06, 2014 . Thanks for your support on Elliott Wave Analysis of AUD/USD for March 06, 2014
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