FX.co ★ AUD/USD analysis for August 29, 2013

AUD/USD Elliott Wave
Since our last analysis the AUDUSD pair has continued trading downwards, corrective wave .y (coloured green) of the D cycle (coloured blue) has finished developing. During the Wednesday's Asian and European sessions we could observe descending movement from 0.8968 towards the 0.8891 level, and we can consider this move as the end of the D wave (coloured blue). Therefore, during the New York session this major pair did not manage to hold this level and the price retraced back to the 0.8954 level. At the moment, the AUDUSD pair is trading around 0.8950 and we are expecting to see continuation of the bullish movements for the next few sessions. 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 0.8890 level as stop loss.

Support and Resistance
(S3) 0.8799 (S2) 0.8845 (S1) 0.8893 (PP) 0.8939 (R1) 0.8987 (R2) 0.9033 (R3) 0.9081

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.8970 with stop loss at 0.8890 and take profit at 0.9142 are recommended.