FX.co ★ AUD/USD analysis for April 09, 2013

AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading upwards, just like we expected, impulsive wave 1 (coloured blue) of the bigger wave (5) (coloured green) has been developing. During the Mondays Asian and European sessions we could observe strong ascending movement from 1.0347 towards the 1.0423 level. Therefore, during the New York session this currency continued trading in a bullish mood and the price reached a new 3 days high at 1.0446 level. We can consider this move as the end of the impulsive wave 1 (coloured blue). Today the AUD/USD pair was trading around 1.0415 area and we expect to see the price lower for the end of corrective wave 2 (coloured blue). In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0385 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0455 as stop loss.

Support and Resistance
(S3) 1.0290 (S2) 1.0318 (S1) 1.0366 (PP) 1.0394 (R1) 1.0442 (R2) 1.0470 (R3) 1.0518

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why short positions at level 1.0430 with stop loss 1.0455 and take profit at 1.0385 are recommended.