20.01.201412:49 Forex Analysis & Reviews: Elliott Wave Analysis of AUD/USD for January 20, 2014

Long-term review

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AUD/USD Elliott Wave
Last week, the AUD/USD pair has been trading downwards, impulsive wave i (coloured blue) of the bigger wave (v)(coloured red) has been developing. In the 1-hour chart you can see that AUD/USD descending move from 0.9083towards 0.8756 level looks as completed cycle, we are seeing price around 0.8805 at the moment and while pricestay above 0.8756 (short term invalidation) we can expect to see more upward movements in the corrective waveii (coloured blue) that is currently developing.In accordance with our wave rules and taking into account thatwave 1 should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profitat 0.8920 (50% of wave 1). Swing traders should wait for the end of the ii wave (coloured blue) before theyenter a short positions.

Support and Resistance
(S3) 0.8687 (S2) 0.8724 (S1) 0.8752 (PP) 0.8789 (R1) 0.8817 (R2) 0.8854 (R3) 0.8882

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upward movements. That is why longpositions at level 0.8810 with stop loss at 0.8756 and take profit at 0.8920 are recommended.

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