FX.co ★ AUD/USD Analysis for April 01, 2013

AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has continued trading downwards, so we changed our primary wave count a little bit. During the Friday's Asian and European sessions we could observe descending movement from 1.0426 towards the 1.0406 level. Therefore, during the New York session this currency pair has continued trading in a bearish mood and we could observe the price reaching a new daily low at 1.0399 level. Today, during the early Asian session the AUD/USD pair has pushed to 1.0385 area and we can consider this move as the end of the sub-wave C (coloured blue) of the (4) wave (coloured green). In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0568 (100% of wave 1). To reduce the risk, we can use support at 1.0360 as stop loss.

Support and Resistance
(S3) 1.0375 (S2) 1.0388 (S1) 1.0401 (PP) 1.0414 (R1) 1.0427 (R2) 1.0440 (R3) 1.0453

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0410 with stop loss 1.0360 and take profit at 1.0568 are recommended.