29.01.201410:35 Forex Analysis & Reviews: Elliott Wave Analysis of AUD/USD for January 29, 2014

Long-term review

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AUD/USD Elliott Wave
For the last few days, the AUD/USD pair has bee trading upwards in a corrective pattern, wave .b (coloured black) of the bigger wave (iii) (coloured blue) has been developing. Yesterday, this upward move just extend toward the new high at 0.8825 that we are currently calling the end of the .b wave (coloured black) and while the price stays below 0.8885, we can look for a selling signal when the price breaks below the 0.8760 level. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 0.8595 (100% of wave A). Swing traders should wait for the (v) wave to complete before price turn higher, and from there we are going to look for a buying opportunity.

Support and Resistance
(S3) 0.8633, (S2) 0.8679, (S1) 0.8728, (PP) 0.8774, (R1) 0.8823, (R2) 0.8869, (R3) 0.8918.

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short position at level of 0.8760 with stop loss at 0.8825 and take profit at 0.8595 are recommended.

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