FX.co ★ EUR/AUD Wave analysis for January 09, 2013

EUR/AUD Elliott Wave
Last few weeks the EUR/AUD pair was trading downwards, corrective (2) wave (coloured green) of the bigger (3) wave (coloured red) was developing. Yesterday during the Asian session we could observe ascending movement from 1.2475 toward the 1.2527 level. Therefore, during the European and New York sessions the EUR/AUD pair did not manage to hold this level and the price started pushing lower reaching a new session low at 1.2437 level. Today this currency pair is trading around 1.2450 level and we expect to see price higher soon. 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 1.3453 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.2157 level as stop loss.

Support and Resistance
(S3) 1.2398 (S2) 1.2428 (S1) 1.2447 (PP) 1.2477 (R1) 1.2507 (R2) 1.2526 (R3) 1.2556

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.2480 with stop loss 1.2157 take profit at 1.3453 are recommended.