FX.co ★ AUD/USD analysis for September 26, 2013

AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has been trading downwards, corrective wave (c) (coloured green) of the bigger wave [4] (coloured black) has been developing. During the Wednesday's Asian and European sessions we could observe the descending movement from 0.9392 towards the 0.9337 level, and we can consider this move as the end of the wave [4] (labeled alt [4] in the chart).Therefore, during the early New York session this major currency did not manage to hold this levels and the price retraced back to the 0.9387 level. At the moment, the AUDUSD pair is trading around 0.9379 and we should see the price moving higher from the current levels or from 0.9300, but in any case our trend is bullish and we want to be buyers. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.9570 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 0.9260 level as stop loss.

Support and Resistance
(S3) 0.9282 (S2) 0.9309 (S1) 0.9338 (PP) 0.9365 (R1) 0.9394 (R2) 0.9421 (R3) 0.9450

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9400 with stop loss at 0.9260 and take profit at 0.9570 are recommended.