FX.co ★ Elliott Wave Analysis of AUD/USD for March 07, 2014

AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has been trading upwards, corrective wave C (coloured blue) of the bigger wave (B) (coloured red) has been developing. In the 1-hour chart of the AUD/USD pair, we can see, that ascending move from the 0.8887 has taken a shape of an impulsive pattern. Inside the C wave we are currently at the end of the extended (iii) wave, so our strategy will remain the same, look for the long positions around 23.6 - 38.2% of the (iii) wave length and try to catch the final (v) wave. In accordance with our wave rules and taking into account that wave (v) should extend 100% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 0.9175 (100% of wave (i)).To reduce the risk, we can use support point at the 0.9035 level as stop loss.

Support and Resistance
(S3) 0.8863, (S2) 0.8918, (S1) 0.9003, (PP) 0.9058, (R1) 0.9143, (R2) 0.9198, (R3) 0.9283. 

Trading forecast 
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.9085 with stop loss at 0.9035 and take profit at 0.9175 are recommended.