FX.co ★ EUR/AUD analysis for February 12, 2013

EUR/AUD Elliott Wave
After a few days trading downwards, the EUR/AUD pair pushed higher yesterday, corrective D wave (coloured blue) of the bigger wave (4) (coloured green) was developing. During the Monday’s Asian and European sessions we could observe ascending movement from 1.9470 towards the 1.3052 level. Therefore, during the New York session this currency pair has continued trading in a bullish movement and the price reached a new two days high at 1.3077 level. At the moment the EUR/AUD pair is trading at the end of the sub-wave D and we expect to see the price lower soon. In accordance with our wave rules and taking into account that the wave E should retrace 61.8% of the wave C, we can define the potential targets with measuring wave C with take profit at 1.2978 (61.8% of wave C). To reduce the risk, we can use invalidation at 1.3157 level as stop loss.

Support and Resistance
(S3) 1.2894 (S2) 1.2945 (S1) 1.2977 (PP) 1.3028 (R1) 1.3079 (R2) 1.3111 (R3) 1.3162

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.3065 with stop loss 1.3157 and take profit at 1.2978 are recommended.