Elliott Wave Analysis of AUD/USD for January 02, 2014
January 2, 2014 2:15 pm
AUD/USD Elliott Wave Since our last analysis the AUD/USD pair has been trading downwards, corrective wave (c) (coloured blue) of the bigger wave (iv) (coloured red) has completed cycle from the 0.8819 level. During today’s Asian session we could observe strong descending movement from 0.8950 towards 0.8853 level and we can consider this move as potential start of the final wave (v) (coloured red). While this major pair remains above the 0.8952 level, we are going to look for more downward movements in the wave (v) before the price starts pushing higher when the development of the wave 2 (coloured green) starts. In accordance with our wave rules and taking into account that the wave 5 should retrace 161.8% of the wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.8735 (161.8% of wave 4).
Support and Resistance (S3) 0.8846 (S2) 0.8871 (S1) 0.8900 (PP) 0.8925 (R1) 0.8954 (R2) 0.8979 (R3) 0.9008
Trading forecast Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.8840 with stop loss at 0.8952 and take profit at 0.8735 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 been trading downwards, corrective wave (c) (coloured blue) of the bigger wave (iv) (coloured red) has completed cycle from the 0.8819 level. During today’s Asian session we could observe strong descending movement from 0.8950 towards 0.8853 level and we can consider this move as potential start of the final wave (v) (coloured red). While this major pair remains above the 0.8952 level, we are going to look for more downward movements in the wave (v) before the price starts pushing higher when the development of the wave 2 (coloured green) starts. In accordance with our wave rules and taking into account that the wave 5 should retrace 161.8% of the wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.8735 (161.8% of wave 4).
Support and Resistance
(S3) 0.8846 (S2) 0.8871 (S1) 0.8900 (PP) 0.8925 (R1) 0.8954 (R2) 0.8979 (R3) 0.9008
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.8840 with stop loss at 0.8952 and take profit at 0.8735 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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