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Market Overview
Yesterday the AUD/USD pair was trading downwards. During the European session the major started the descending movement to the 1.0475 level. Therefore during the early New York session we could observe continuation of the bearish mood and price reaching 3 days' low at 1.0457, the AUD/USD pair did not manage to hold this level and at the end of the New York session we could observe price slightly higher. Today during the Asian session we could observe upmove to 50 EMA resistance line.Today the AUD/USD pair is expected to test 200 EMA resistance at 1.0550 level. Also it is necessary to consider the data concerning the USD Fed Chairman Bernanke Testifies and Existing Home Sales that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.0352 (S2) 1.0416 (S1) 1.0456 (PP) 1.0520 (R1) 1.0584 (R2) 1.0624 (R3) 1.0688
AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished wave B (colored pink) of the bigger B wave (colored blue) in the point 1.0422. Presently we can observe the start of the C wave. In accordance with our wave rules and taking into account that the wave C is equal to the wave A, we can define the potential targets with help of Fibonacci retracement (1.0422-1.0619-1.0422); the first Take Profit is to be placed at level 1.0624 (78.6% of the wave A), the second Take Profit at 1.0670 (100% of the wave A). For Stop Loss we can use the support level 1.0450.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin an upward movement. That is why long positions at levels 1.0535 with Stop Loss at 1.0450, Take Profit at 1.0624 and Take Profit 2 at 1.0670 are recommended.
