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Market Overview
Yesterday the AUD/USD pair was trading within the downward movement. During the European session this major pair started pushing lower to the 1.0728 level.The AUD/USD pair did not manage to hold at this level, therefore during the middle New York session the pair moved above the 1.0780.Today In Asian session after we saw a raise of 0.3% in the AUD retail sales in January and today's LTRO, this currency pair has started pushing higher to the 1.0820 level.Today the AUD/USD is expected to go higher. Also it is necessary to consider the data concerning the EUR 3-y LTRO , USD Prelim GDP q/q, Fed Chairman Bernanke Testifies and Crude Oil Inventories.
Support and Resistance levels
(S3) 1.0702 (S2) 1.0724 (S1) 1.0738 (PP) 1.0761 (R1) 1.0783 (R2) 1.0797 (R3) 1.0820
AUD/USD Elliott Wave Analysis
The AUD/USD pair finished the (2) wave of the bigger wave 5 at level 1.0653. Presently we can observe the wave (3). According to our wave rules and taking into consideration that the wave (3) is the longest, we can define the potential targets with help of Fibonacci extension (1.0597-1.0754-1.0653) with first Take Profit at level 1.0874(138.2% of wave (1)) and second Take Profit at 1.0910 (161.8% of wave (1)). For stop loss we can use support level at 1.0785.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why Long position at levels 1.0820 with Stop Loss at 1.0785, Take Profit 1 at 1.0874 and Take Profit 2 at 1.0910 are recommended.
