Elliott Wave Analysis of AUD/USD for February 26, 2014
February 26, 2014 8:20 am
AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has continued trading upwards, that is why we have adjusted our primary elliott wave count, and we are now looking at the corrective wave B (coloured blue) as the double three correction instead of simple A-B-C pattern. In the 1-hour chart of the AUD/USD pair above, we can see that we are labeling yesterday’s ascending movements from the 0.8956 towards 0.9025 as the sub-wave (b) of the bigger wave [y], and while price remain below the 0.9050 region our focus remain on the downside. In accordance with our wave rules and taking into account that wave [y] should extend 100% of wave [w], we can define the potential targets with measuring wave [y] with take profit at 0.8901 (100% of wave A). Alternate count: Since we already have corrective pullback from the top at the 0.9080 level, we can consider the B wave as already completed cycle at the 0.8933 level, and if we see a break above 0.9050 we are going to look for 0.9080-0.9100 region region right away.
Support and Resistance (S3) 0.8958, (S2) 0.8981, (S1) 0.8998, (PP) 0.9021, (R1) 0.9038, (R2) 0.9061, (R3) 0.9078.
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
AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has continued trading upwards, that is why we have adjusted our primary elliott wave count, and we are now looking at the corrective wave B (coloured blue) as the double three correction instead of simple A-B-C pattern. In the 1-hour chart of the AUD/USD pair above, we can see that we are labeling yesterday’s ascending movements from the 0.8956 towards 0.9025 as the sub-wave (b) of the bigger wave [y], and while price remain below the 0.9050 region our focus remain on the downside. In accordance with our wave rules and taking into account that wave [y] should extend 100% of wave [w], we can define the potential targets with measuring wave [y] with take profit at 0.8901 (100% of wave A).
Alternate count: Since we already have corrective pullback from the top at the 0.9080 level, we can consider the B wave as already completed cycle at the 0.8933 level, and if we see a break above 0.9050 we are going to look for 0.9080-0.9100 region region right away.
Support and Resistance
(S3) 0.8958, (S2) 0.8981, (S1) 0.8998, (PP) 0.9021, (R1) 0.9038, (R2) 0.9061, (R3) 0.9078.
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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