FX.co ★ EUR/AUD Analysis for February 13, 2013

EUR/AUD Elliott Wave
Since our last analyses the EUR/AUD pair was trading lower like we expected, corrective wave E (coloured blue) of the bigger (4) wave (coloured green) was developing. Yesterday during the Asian session we could observe an ascending movement from 1.3034 towards the 1.3143 level and we can consider this move as the end of the corrective D wave (coloured blue). Therefore, during the European and New York sessions when development of the E wave started, we could observe a strong bearish movement that bring price to the 1.2972 level. We can consider this low as the end of the (4) wave (coloured green). Today the EUR/AUD pair is trading around 1.3035 and we are expecting to see price above 1.3300 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.3351 (100% of wave 1). To reduce the risk, we can use invalidation at 1.2973 level as stop loss.

Support and Resistance
(S3) 1.2895 (S2) 1.2964 (S1) 1.3007 (PP) 1.3076 (R1) 1.3119 (R2) 1.3188 (R3) 1.3231

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.3050 with stop loss 1.2793 and take profit at 1.3351 are recommended.