Elliott Wave analysis of AUD/USD for January 08, 2014
January 8, 2014 1:45 pm
AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading side-ways, corrective wave ii (coloured blue) of the bigger wave (v) (coloured red) has been developing. In the 1-hour chart above you can see that wave i (coloured blue) has completed the cycle at 0.8891 and from there we can observe corrective structure that should end in the next few hours around the 0.8950 level – 50% of the wave i. All the way the AUD/USD pair stays below 0.9000, we can look for a selling position in the impulsive iii wave (coloured blue). In accordance with our wave rules and taking into account that wave iii should retrace 161.8% of wave i, we can define the potential targets with measuring wave i with take profit at 0.8768 (161.8% of wave 1).
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.8950 with stop loss at 0.9000 and take profit at 0.8768 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 side-ways, corrective wave ii (coloured blue) of the bigger wave (v) (coloured red) has been developing. In the 1-hour chart above you can see that wave i (coloured blue) has completed the cycle at 0.8891 and from there we can observe corrective structure that should end in the next few hours around the 0.8950 level – 50% of the wave i. All the way the AUD/USD pair stays below 0.9000, we can look for a selling position in the impulsive iii wave (coloured blue). In accordance with our wave rules and taking into account that wave iii should retrace 161.8% of wave i, we can define the potential targets with measuring wave i with take profit at 0.8768 (161.8% of wave 1).
Support and Resistance
(S3) 0.8814 (S2) 0.8853 (S1) 0.8891 (PP) 0.8930 (R1) 0.8968 (R2) 0.9007 (R3) 0.9045
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.8950 with stop loss at 0.9000 and take profit at 0.8768 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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