FX.co ★ Elliott Wave Analysis of AUD/USD for April 11, 2014

AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has been trading downwards, just like we expected, impulsive cycle in the C wave (coloured red) has been completed, and we need to see now, what can we do next in the pair. In the 1-hour chart, we can observe that ascending cycle from the 0.8918 level, already have enough sub-waves to call the C wave completed. The RSI indicator point for bearish divergence, and this just makes us look for a selling opportunity at the (ii) wave (coloured blue) pullback. In accordance with our wave rules and taking into account that wave (iii) should extend 161.8% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 0.9175 (161.8% of wave (i)). Swing traders should wait for more data to come and prove that bigger downwards trend is going to happen again.

Support and Resistance
(S3) 0.9278, (S2) 0.9324, (S1) 0.9368, (PP) 0.9414, (R1) 0.9458, (R2) 0.9504, (R3) 0.9548.

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9400 with stop loss at 0.9470 and take profit at 0.9175 are recommended.