FX.co ★ AUD/CAD Wave Analysis for September 6, 2012

AUD/CAD Elliott Wave
Yesterday the AUD/CAD pair was trading in a upward move developing wave (1) wave (coloured purple) the bigger 1 wave (coloured blue). During the early Asian session we could observe a descending movement towards the 1.0051 level and we can consider this move as the end of the (C) wave (coloured green) of the bigger wave (2) (coloured orange). Therefore, during the European and New York session this currency started pushing higher developing 1 impulsive wave (coloured blue). In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with Fibonacci extension (1.0051-1.0103-1.0076), with Take Profit at 1.0162 (161.8% of wave 1) and Take Profit 2 at 1.0215 (261.8% of wave 1) . To reduce the risk, we can use support at 1.0080 level as Stop Loss. Also it is necessary to monitor the AUD Employment Change and Unemployment Rate data that can change the rate of the pair.
Support and Resistance
(S3) 1.0029 (S2) 1.0050 (S1) 1.0063 (PP) 1.0084 (R1) 1.0105 (R2) 1.0118 (R3) 1.0139
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0130 with Stop Loss 1.0080, Take Profit at 1.0162, and Take Profit 2 at 1.0215 are recommended.