FX.co ★ AUD/USD Wave Analysis for September 14, 2012

AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair was trading in a upward move, developing flat C wave (coloured blue) of the bigger (B) wave (coloured green). Yesterday during the Asian and European sessions, we could observe a descending movement from 1.0486 towards the 1.0426 level. Therefore, during the early New York session, the AUD/USD pair did not manage to hold this level and the price started pushing higher reaching a new daily high at 1.0567 level. At the moment, this currency pair is trading around 1.0590 level and we are expecting to see the price lower when the development of the corrective (B) wave is finished. In accordance with our wave rules and taking into account that the wave C retraces 161.8% of the wave A, we can define the potential targets with Fibonacci extensions (1.0612-1.0166-1.0600) with Take Profit 1 at 1.0476 (100% of wave A) and Take Profit 2 at 0.9871 (161.8% of wave A). Resistance point at 1.0650 can be used as Stop Loss.
Support and Resistance
(S3) 1.0373 (S2) 1.0426 (S1) 1.0459 (PP) 1.0513 (R1) 1.0566 (R2) 1.0599 (R3) 1.0653
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0590 with Stop Loss 1.0650, Take Profit 1 at 1.0476 and Take Profit 0.9871 are recommended.