FX.co ★ AUD/USD analysis for August 28, 2013

AUD/USD Elliott wave
Since our last analysis the AUDUSD pair has been trading downwards, corrective wave .y (coloured green) of the bigger wave D (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9010 towards the 0.8932 level. Therefore, during the New York session this major currency continued trading in the bearish mood and the price made a new low at the 0.8925 level. At the moment, the AUDUSD pair is trading around 0.8912 and we are expecting to see three swings higher in the next few session to complete E wave of (4) wave.In accordance with our wave rules and taking into account that wave E should retrace 61.8% of wave C, we can define the potential targets with measuring wave C with take profit at 0.9142 (61.8% of wave C). To reduce the risk, we can use invalidation point at the 0.8850 level as stop loss.

Support and Resistance
(S3) 0.8827 (S2) 0.8880 (S1) 0.8931 (PP) 0.8984 (R1) 0.9035 (R2) 0.9088 (R3) 0.9139

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long positions at the level of 0.8930 with stop loss at 0.8850 and take profit at 0.9142 are recommended.