Elliott Wave Analysis of AUD/USD for March 12, 2014
March 12, 2014 10:05 am
AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has continued trading downwards, our invalidation got triggered, and we have moved towards the alternate count now. In the 1-hour chart of the pair above, we can see three waves lowers from the 0.9133 level, and while price remain below the top, we should see more downside movements inside the (i) / (a) wave (coloured green). Short term supports should be around 0.8925 – 0.8895 area, 100 – 123.6% of the smaller a = c wave, and from there we should see a pullback in the wave (ii) / (b) (coloured green) that we can use as our short term buying setup. In accordance with our wave rules and taking into account that wave (ii) should extend 50% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 0.9029 (50% of wave (i)). Swing traders should wait for the wave (ii) to end before they join the sellers.
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.8925 with stop loss at 0.8850 and take profit at 0.9029 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
Since our last analysis, the AUD/USD pair has continued trading downwards, our invalidation got triggered, and we have moved towards the alternate count now. In the 1-hour chart of the pair above, we can see three waves lowers from the 0.9133 level, and while price remain below the top, we should see more downside movements inside the (i) / (a) wave (coloured green). Short term supports should be around 0.8925 – 0.8895 area, 100 – 123.6% of the smaller a = c wave, and from there we should see a pullback in the wave (ii) / (b) (coloured green) that we can use as our short term buying setup. In accordance with our wave rules and taking into account that wave (ii) should extend 50% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 0.9029 (50% of wave (i)). Swing traders should wait for the wave (ii) to end before they join the sellers.
Support and Resistance
(S3) 0.8853, (S2) 0.8907, (S1) 0.8941, (PP) 0.8995, (R1) 0.9029, (R2) 0.9083, (R3) 0.9117.
Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.8925 with stop loss at
0.8850 and take profit at 0.9029 are recommended.
The material has been provided by InstaForex Company – www.instaforex.com
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