FX.co ★ AUD/USD analysis for March 25, 2013

AUD/USD Elliott Wave
Last week, the AUD/USD pair has finished development of triangle wave 4 (coloured blue) of the bigger (3) wave (coloured green). During the Friday's Asian session we could observe ascending movement from 1.0422 towards 1.0448 level. Therefore, during the European and New York sessions this currency continued trading in a bullish mood and the price reached a new daily high at 1.0460 level. At the moment the AUD/USD pair is trading around 1.0467 level and we expect to see the price around 1.0500 in the next few sessions. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0500 (161.8% of wave 1). To reduce the risk, we can use support at 1.0430 level as stop loss.

Support and Resistance
(S3) 1.0383 (S2) 1.0402 (S1) 1.0422 (PP) 1.0441 (R1) 1.0461 (R2) 1.0480 (R3) 1.0500

Trading forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0470 with stop loss 1.0430 and take profit at 1.0500 are recommended.