FX.co ★ AUD/CAD Wave Analysis for September 21, 2012

AUD/CAD Elliott Wave
Since our last analysis, the AUD/CAD pair was trading in a upward move, developing corrective wave B (coloured blue) of the bigger (2) wave (coloured green). Yesterday during the early Asian session, we could observe a strong descending movement from 1.0210 towards the 1.0156 level. Therefore, during the European and New York sessions, the AUD/CAD pair did not manage to hold this level and the price retrace back to 1.0200. Today this currency pair continued trading in a bullish mood reaching 1.0240 level and we can consider this move as the end of the corrective B wave (coloured blue). In accordance with our wave rules and taking into account that the wave C should retrace 100% of the wave A, we can define the potential targets with measuring A wave, with Take Profit at 1.0128 (100% of wave A). To reduce the risk, we can use resistance at 1.0250 level as Stop Loss. Also it is necessary to monitor the CAD Core CPI m/m, CPI m/m, Wholesale Sales m/m data that can change the rate of the pair.
Support and Resistance
(S3) 1.0131 (S2) 1.0153 (S1) 1.0167 (PP) 1.0189 (R1) 1.0211 (R2) 1.0225 (R3) 1.0247
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0220 with Stop Loss 1.0250 and Take Profit at 1.0128 are recommended.