FX.co ★ AUD/CAD Wave Analysis for September 19,2012

AUD/CAD Elliott Wave
For the last few days the AUD/CAD pair was trading in a downward move, developing corrective A wave (coloured blue) of the bigger wave (2) (coloured green). Yesterday during the European session, we could observe a strong descending movement from 1.0193 towards the 1.0152 level and we can consider this move as the end of the first corrective A wave. Therefore, during the early New York session, the AUD/CAD pair did not manage to hold this level and the price retraced back to 1.0185 level when developing of the B wave starts. At the moment, this currency pair is trading around 1.0180 level and we are expecting to see the price around 1.0100 level soon. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring 1 wave, with Take Profit 1 at 1.0137 (61.8% of wave 1) and Take Profit 2 at 1.0100 (78.6% of wave 1). To reduce the risk, we can use resistance at 1.0250 level as Stop Loss.
Support and Resistance
(S3) 1.0127 (S2) 1.0149 (S1) 1.0163 (PP) 1.0186 (R1) 1.0208 (R2) 1.0222 (R3) 1.0245
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0230 with Stop Loss 1.0250 ,Take Profit 1 at 1.0137 and Take Profit 2 at 1.0100 are recommended.