FX.co ★ Elliott Wave Analysis of AUD/USD for March 04, 2014

AUD/USD Elliott Wave
Last week, the AUD/USD pair traded downwards, corrective wave [y] (coloured black) of the bigger wave B (coloured blue) was developing. In the 1-hour chart of the pair above, we can see that we have completed 7 swings move from the 0.9081 level, this is telling us that there is a good chance that wave B has completed the double three pattern with a test of the 0.8887 low. For the next few days, we should only look for a buying opportunity against the 0.8887 level. 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 0.9310 (100% of wave A). If the price make a new low below the 0.8903 level, we must go with idea that wave B is still incomplete cycle and we should wait for the next support level at 0.8866 to come before we try another setup.
Support and Resistance
(S3) 0.8854, (S2) 0.8879, (S1) 0.8921, (PP) 0.8946, (R1) 0.8988, (R2) 0.9013, (R3) 0.9055. 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 0.8950 with stop loss at 0.8887 and take profit at 0.9310 are recommended.