FX.co ★ AUD/USD analysis for September 20, 2013

AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has been trading downwards, just like we expected, corrective sub-wave .A (coloured black) of the bigger wave 4 (coloured green) has finished its developing. Yesterday, during the European session we could observe descending movement from 0.9523 towards the 0.9478 level. Therefore, during the New York session this major currency has continued trading in a bearish mood and price has reached a new low at 0.9424 level. We can consider this move as the end of the wave .A (coloured black). At the moment the AUDUSD pair is trading around 0.9450 and we should expect to see another push lower when .B wave completes all three sub-waves. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9353 (100% of wave A). To reduce the risk, we can use invalidation point at 0.9525 level as stop loss.

Support and Resistance
(S3) 0.9307 (S2) 0.9366 (S1) 0.9404 (PP) 0.9463 (R1) 0.9501 (R2) 0.9560 (R3) 0.9598

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 0.9475 with stop loss at 0.9525 and take profit at 0.9353 are recommended.