FX.co ★ AUD/USD analysis for May 21, 2013

AUD/USD Elliott Wave
For the last few weeks the AUD/USD pair has been trading downwards, corrective wave (C) (coloured red) of the bigger wave E (coloured blue) has finished to develop. Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9736 towards the 0.9792 level. Therefore, during the New York session this currency has continued trading in a bullish mood and the price has reached a new daily high at 0.9826 level. Today, the AUD/USD pair is trading around 0.9778 area and we expect to see the continuation of the bullish mood for the next few weeks. At the moment we do not have clear view where impulsive wave 1 (coloured blue) should end, but we know that price need to go higher, for Take Profit we can use 1.0460 resistance and for Stop Loss we can use invalidation at 0.9584 level.
Support and Resistance
(S3) 0.9664 (S2) 0.9700 (S1) 0.9753 (PP) 0.9789 (R1) 0.9842 (R2) 0.9878 (R3) 0.9931
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9900 with stop loss at 0.9584 and take profit at 1.0460 are recommended.