FX.co ★ AUD/CAD Wave Analysis for September 24,2012

AUD/CAD Elliott Wave
Since our last analysis, the AUD/CAD pair was trading in a upward move, developing corrective B wave (coloured blue) of the bigger wave (2) (coloured green). During the Friday's European session, we could observe an ascending move from 1.0188 towards the 1.0245 level and we can consider this move as the end of the B wave (coloured blue). Therefore, during the New York session, the AUD/CAD pair started pushing lower reaching 1.0193 level. At the moment, this currency pair is trading around 1.0200 level and we are expecting to see the price at 1.0130 today. 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 Fibonacci Extensions (1.0268-1.0152-1.0245), with Take Profit at 1.0128 (100% of wave A). To reduce the risk, we can use resistance at 1.0245 level as Stop Loss. Also it is necessary to monitor the AUD RBA Financial Stability Review data that can change the rate of the pair.
Support and Resistance
(S3) 1.0143 (S2) 1.0169 (S1) 1.0185 (PP) 1.0212 (R1) 1.0238 (R2) 1.0254 (R3) 1.0281
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0180 with Stop Loss 1.0245 and Take Profit at 1.0128 are recommended.