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Market Overview
Yesterday the AUD/USD pair was trading within the sideways movement. During the Asian session the major started ascending movement to the 1.0560 (Daily High). The AUD/USD did not manage to hold this level and price startув pushing lower to the 1.0485 level in the European session.Therefore during the New York session we could observer continuation of bullish mood and price trying to test the daily high at 1.0560 2 times but the AUD/USD pair did not manage to broke this resistance line.Today at the Asian session we could observe downward movement in this major pair and price under 1.0490. Today the AUD/USD pair is expected to test 1.0600 level. Also it is necessary to consider the data concerning the USD Fed Chairman Bernanke Speach and Crude Oil Inventories that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.0456 (S2) 1.0485 (S1) 1.0503 (PP) 1.0532 (R1) 1.0561 (R2) 1.0579 (R3) 1.0608
AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished the wave 3 of the bigger A wave in the point 1.0473, and 4 wave in the point 1.0669. Presently we are at the end of the a wave, we expect to see the end of A wave at 1.0450 level. In accordance with our wave rules and taking into account that the wave B will retrace to 61.8 or 78.6% of the wave A we can define the potential targets with the help of Fibonacci retracement (1.0855-1.0450) with first Take Profit at level 1.0699 (61.8% of the wave A) and second Take Profit at 1.0768 (78.6% of the wave A). For Stop Loss we can use 1.0420 support level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 1.0500 with Stop Loss at 1.0420, Take Profit at 1.0699 and Take Profit 2 at 1.0768 are recommended.
