FX.co ★ AUD/USD analysis for June 07, 2013

AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading upwards, so we have changed our primary wave count a little bit. Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9434 towards the 0.9515 level. Therefore, during the New York session this major currency has continued trading in a bullish mood and the price has reached a new daily high at 0.9674 level. We can consider this move as the end of the sub-wave [c] (coloured red) of the bigger wave 2 (coloured green). At the moment the AUD/USD pair is trading around 0.9450 level and we expect to see the continuation of the bearish movement in the next few days. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9100 (161.8% of wave 1). To reduce the risk, we can use yesterdays high at 0.9674 level as stop loss.
Support and Resistance
(S3) 0.9226 (S2) 0.9330 (S1) 0.9465 (PP) 0.9569 (R1) 0.9704 (R2) 0.9808 (R3) 0.9943
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9434 with stop loss at 0.9674 and take profit at 0.9100 are recommended.