FX.co ★ AUD/USD analysis for September 03, 2013

AUD/USD Elliott Wave
Since our last analysis, the AUDUSD pair has been trading upwards, just like we expected, corrective wave E (coloured blue) of the bigger wave (4) (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe an ascending movement from 0.8890 towards the 0.8890 level. Therefore, during the New York session this major currency pair continued trading in the bullish mood and the price reached a new daily high at 0.9022. At the moment, the AUDUSD pair is developing final wave .c of the E wave (coloured blue) and we are expecting to see more upward action before the price turns lower. In accordance with our wave rules and taking into account that wave E should retrace 61.8% of wave C, we can define potential targets with measuring wave C with take profit at 0.9131 (61.8% of wave C). To reduce the risk, we can use invalidation point at 0.8890 as stop loss.

Support and Resistance
(S3) 0.8838 (S2) 0.8881 (S1) 0.8928 (PP) 0.8971 (R1) 0.9018 (R2) 0.9061 (R3) 0.9108

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long position at the level of 0.9050 with stop loss at 0.8890 and take profit at 0.9131 are recommended.