Market Overview Yesterday the AUD/USD pair was trading within the downward trend. During the European session the major started to decline to 1.3400. Therefore, during the New York session we were able to observe the continuation of the bearish mood; the price reached the new daily low at 1.0355 level at the end of session. Today during the Asian session we have observed continuation of decline under 1.0340.Today the AUD/USD pair is expected to test 100 EMA. Also it is necessary to consider the data concerning the USD Unemployment Claims, Final GDP q/q, FOMC Member Lockhart Speaks and Fed Chairman Bernanke Speaks that can affect the rate of the pair.
Support and Resistance levels (S3) 1.0293 (S2) 1.0335 (S1) 1.0360 (PP) 1.0401 (R1) 1.0443 (R2) 1.0468 (R3) 1.0509
AUD/USD Elliott Wave Analysis The AUD/USD pair has finished (A) wave (coloured black) of the bigger B wave (coloured blue) in the point 1.0557, and wave (B) in the point 1.0341. Presently we can observe start of (C) wave. In accordance with our wave rules and taking into account that the wave C is equal to the wave A, we can define the potential targets with the Fibonacci retracement (1.0335-1.0557-1.0341); the first Take Profit at 1.0561 (100% of wave A) and second Take Profit at 1.0621 (127.2% of wave A). For Stop Loss we can use a 1.0336 level.
Trading Forecast Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why Long position at levels 1.0410 with Stop Loss at 1.0336, Take Profit at 1.0561 and Take Profit 2 at 1.0621 are recommended.
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