FX.co ★ EUR/AUD Analysis for February 14, 2013

EUR/AUD Elliott Wave
Since our last analysis the EUR/AUD was trading downwards, so we need to change our primary count. Yesterday, during the Asian session, we could observe an ascending movement from 1.2981 towards 1.3090 level and we can consider this movement as the final sub-wave of the corrective B wave (coloured blue) triangle. Therefore, during the European and New York sessions this currency did not manage to hold this level and price retraced to 1.2963 level (3 days low). This move confirms that C wave starts and we are expecting to see the price pushing a little more lower today to finish all five sub-waves of this corrective movement. In accordance with our wave rules and taking into account that the wave C should retrace 100% of the wave A, we can define the potential targets with measuring wave A with take profit at 1.2800 (100% of wave A). To reduce the risk, we can use invalidation at 1.2963 level as stop loss.

Support and Resistance
(S3) 1.2874 (S2) 1.2892 (S1) 1.2902 (PP) 1.2919 (R1) 1.2937 (R2) 1.2947 (R3) 1.2964

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.2900 with stop loss 1.2963 and take profit at 1.2800 are recommended.