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

AUD/USD Elliott Wave
Since our last analysis the AUD/USD pair has been trading downwards, impulsive sub-wave 3 of the bigger wave 3 (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9312 towards the 0.9164 level and we can consider this move as the end of the impulsive sub-wave 3 (coloured blue). Therefore, during the New York session this major currency did not manage to hold this area and the price has retraced back to 0.9235 level. At the moment the AUD/USD pair is trading around 0.9240 area and we expect to see the continuation of the bearish movement in the next few sessions. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9095 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9438 level as stop loss.
Support and Resistance
(S3) 0.8984 (S2) 0.9073 (S1) 0.9134 (PP) 0.9223 (R1) 0.9284 (R2) 0.9373 (R3) 0.9434
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9319 with stop loss at 0.9438 and take profit at 0.9095 are recommended.