EUR/USD analysis for May 09, 2013

EUR/USD Elliott wave   
For the last few days the EUR/USD pair has been trading upwards, corrective wave Y (coloured blue) of the bigger wave (2) (coloured green) has finished developing. Yesterday, during the Asian and European session we could observe ascending movement from 1.3071 towards the 1.3146 level.Therefore, during the New York session this major pair has continued trading in a bullish mood and price has reached a new high at 1.3194 level. We can consider this move as the end of the wave (2) (coloured green). At the moment the EUR/USD pair is trading around 1.3154 and we are expecting to see price lower in the next few sessions.In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.3103 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.3195 level as stop loss.
Support and resistance
(S3) 1.3017 (S2) 1.3063 (S1) 1.3092 (PP) 1.3139 (R1) 1.3185 (R2) 1.3214 (R3) 1.3261
Trading forecast 
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.3150 with stop loss at 1.3195 and take profit at 1.3103 are recommended.  

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