FX.co ★ AUD/USD analysis for June 26, 2013

AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading sideways, corrective sub-wave b (coloured green) of the bigger wave 4 (coloured blue) has been developing. Yesterday, during the European session we could observe descending movement from 0.9296 towards the 0.9217 level. Therefore, during the New York session this major currency did not manage to hold this level and the price has reached a new session's high at 0.9277 level. At the moment the AUD/USD pair is trading around 0.9295 area and we expect to see the price lower 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 0.9023 (61.8% of wave 3). To reduce the risk, we can use resistance point at 0.9433 level as stop loss.
Support and Resistance
(S3) 0.9100 (S2) 0.9148 (S1) 0.9200 (PP) 0.9248 (R1) 0.9300 (R2) 0.9348 (R3) 0.9400
Trading forecast
Proceeding from Elliott Wave today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9265 with stop loss at 0.9433 and take profit at 0.9023 are recommended.