Elliott Wave Analysis of AUD/USD for February 25, 2014
February 25, 2014 1:45 pm
AUD/USD Elliott Wave
For the last few days, the AUD/USD pair has been trading upwards, corrective wave [b] (coloured black) of the bigger wave B (coloured blue) has been developing. In the 1-hour chart of the pair, we can see that we have completed the first three swings of the B wave at the 0.8933 level, and while price remain below 0.9080 we are going to look for one more push lower in the [c] wave before we call the B wave (coloured blue) complete cycle. Short term traders can try selling the pair at the pullbacks, and swing traders need to wait for the [c] of B to complete before we try long position against the 0.8750 level.In accordance with our wave rules and taking into account that wave [c] should extend 100% of wave [a], we can define the potential targets with measuring wave [a] with take profit at 0.8901 (100% of wave A).
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9020 with stop loss at 0.9080 and take profit at 0.8901 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
AUD/USD Elliott Wave
For the last few days, the AUD/USD pair has been trading upwards, corrective wave [b] (coloured black) of the bigger wave B (coloured blue) has been developing. In the 1-hour chart of the pair, we can see that we have completed the first three swings of the B wave at the 0.8933 level, and while price remain below 0.9080 we are going to look for one more push lower in the [c] wave before we call the B wave (coloured blue) complete cycle. Short term traders can try selling the pair at the pullbacks, and swing traders need to wait for the [c] of B to complete before we try long position against the 0.8750 level.In accordance with our wave rules and taking into account that wave [c] should extend 100% of wave [a], we can define the potential targets with measuring wave [a] with take profit at 0.8901 (100% of wave A).
Support and Resistance
(S3) 0.8853, (S2) 0.8895, (S1) 0.8964, (PP) 0.9006, (R1) 0.9075, (R2) 0.9117, (R3) 0.9186.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9020 with stop loss at 0.9080 and take profit at 0.8901 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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