FX.co ★ AUD/USD Elliott Wave Count for March 28, 2012

Market Overview
Yesterday the AUD/USD pair was trading within the downward trend. During the European session the major started to decline to 1.0500 (200 EMA support). Therefore, during the New York session we could observe continuation of the bearish mood; the price reached the new daily low at 1.0450 at the end of session. Today during the Asian session we could observe continuation of downward trend and price above 1.0410.Today the AUD/USD pair is expected to test 200 EMA. Also it is necessary to consider the data concerning the USD Core Durable Goods Orders m/m, Durable Goods Orders m/m and Crude Oil Inventories that can affect the rate of the pair.

Support and Resistance levels
(S3) 1.0382 (S2) 1.0427 (S1) 1.0456 (PP) 1.0501 (R1) 1.0546 (R2) 1.0575 (R3) 1.0620

AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished (A) wave (colored black) of the bigger B wave (colored blue) in the point 1.0557.Presently we can observe end of (B) wave (colored black).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 the Fibonacci retracement (1.0335-1.0557-1.0400); the First Take Profit at 1.0586 (78.6% of wave A) and Second Take Profit at 1.0633 (100% of wave A). For Stop Loss we can use 1.0336 invalidation 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 1.0455 with Stop Loss at 1.0336, Take Profit at 1.0586 and Take Profit 2 at 1.0633 are recommended.