FX.co ★ AUD/USD analysis for September 06, 2013

AUD/USD Elliott Wave
For the last few days the AUDUSD pair has been trading downwards, corrective wave .4 (coloured green) of the final wave C (coloured blue) has been developing. Yesterday,during the Asian and European sessions we could observe descending movement from 0.9162 towards the 0.9115 level and we can consider this move as the end of the wave .4 (coloured green). Therefore, during the New York session this major pair did not manage to hold this level and the price retraced back to the 0.9140 level. At the moment, the AUDUSD pair is trading around 0.9133 area and we are expecting to see one more push higher today before wave C finishes all 5 sub-waves. 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 0.9250 (61.8% of wave 3). To reduce the risk, we can use invalidation point at the 0.9100 level as stop loss.

Support and Resistance
(S3) 0.9024 (S2) 0.9070 (S1) 0.9096 (PP) 0.9142 (R1) 0.9168 (R2) 0.9214 (R3) 0.9240

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at the level of 0.9150 with stop loss at 0.9100 and take profit at 0.9250 are recommended.