09.08.201212:19 Forex Analysis & Reviews: AUD/CAD Weekly Wave Analysis

AUD/CAD Elliott Wave
During last month the AUD/CAD pair was trading in an upward move until Monday when impulsive (5) wave (coloured green) of the bigger wave (1) (coloured orange) finished and we could observe the price going lower for the last few days when the development of the corrective (2) wave starts. Yesterday during the European and New York sessions we could see a strong descending movement towards the 1.0498 level (new 4 days low). At the moment, the price is trading around 1.0510 level and we are expecting to find it around 1.0200 in the next few weeks. In compliance with our wave rules and keeping in mind that the wave 2 retraces 61.8% of the wave 1, we can specify the potential targets with Fibonacci retracement (0.9952-1.0593) ,Take Profit 1 at 1.0351 (38.2% of wave 1), and Take Profit 2 at 1.0200 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0590 as Stop Loss. Moreover, it is necessary to monitor the AUD Unemployment Claims, Unemployment Rate and CAD Housing Starts, NHPI m/m, Trade Balance data that can change the rate of the pair.
Support and Resistance
(S3) 1.0484 (S2) 1.0496 (S1) 1.0503 (PP) 1.0516 (R1) 1.0528 (R2) 1.0535 (R3) 1.0548
Trading Forecast
On the basis of Elliott Wave rules today, the trend is tend to begin the downward movement. For this reason short positions at level 1.0500 with Stop Loss 1.0590, Take Profit 1 1.0351, and Take Profit 2 1.0200 are recommended.