FX.co ★ AUD/USD Analysis for February 15, 2013

AUD/USD Elliott Wave
For the last few days the AUD/USD pair was trading upwards, in Elliott wave perspective corrective wave C (coloured blue) of the bigger wave (2) (coloured green) was developing. Yesterday, during the Asian and the European sessions, we could observe an ascending movement from 1.0326 towards 1.0363 level. Therefore, during the New York session this major pair has continued trading in a bullish mood and the price reached a new high at 1.0374 level. At the moment, the AUD/USD pair is trading around 1.0355 level and we are expecting to see the price higher for the next few days. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0456 (61.8% of wave 1). To reduce the risk, we can use support at 1.0300 level as stop loss.

Support and Resistance
(S3) 1.0309 (S2) 1.0325 (S1) 1.0335 (PP) 1.0351 (R1) 1.0367 (R2) 1.0377 (R3) 1.0393

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.375 with stop loss 1.0300 and take profit at 1.0456 are recommended.