23.08.201311:34 Forex Analysis & Reviews: AUD/USD analysis for August 23, 2013

Long-term review

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AUDUSD Elliott Wave
Since our last analysis the AUDUSD pair has been trading slightly upwards, just like we expected, corrective wave .A (coloured green) of the bigger wave Y (coloured blue) has started developing. Yesterday, during the Asian and European session we could observe ascending movement from 0.8930 towards the 0.9022 level. Therefore, during the New York session this major pair continued trading higher and the price reached a new daily high at the 0.9042 level. At the moment, the AUDUSD pair is trading around the 0.9000 level and we are expecting to see, at least, one more swing higher before we can say that A wave (coloured green) is complete. 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 0.9118 (100% of wave A). To reduce the risk, we can use invalidation point at 0.8930 level as stop loss.

Support and Resistance
(S3) 0.8833 (S2) 0.8882 (S1) 0.8944 (PP) 0.8993 (R1) 0.9055 (R2) 0.9104 (R3) 0.9166

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long positions at the level of 0.9010 with stop loss at 0.8930 and take profit at 0.9118 are recommended.

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