12.02.201410:32 Forex Analysis & Reviews: Elliott Wave Analysis of AUD/USD for February 12, 2014

AUD/USD Elliott Wave
Yesterday, the AUD/USD pair has continued trading upwards, just like we expected, impulsive wave (v)/(iii) (coloured black) of the bigger wave [i] (coloured green) has been developing. In the 1-hour chart of the AUD/USD pair, we can see that we are currently in the final wave v of (v) that is taking the leading diagonal pattern. We should see the end of the wave [i] in the early London session around at the 0.9070 level and from there we are going to see a lower price, and that is why we want to be sellers when we see the price below the 0.9030 level (confirmation that [i]) wave is over. In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.8869 (50% of wave 1). The RSI indicator is still showing divergence and while this divergence stays intact, this count is going to stay valid.

Support and Resistance
(S3) 0.8862, (S2) 0.8901, (S1) 0.8969, (PP) 0.9008, (R1) 0.9076, (R2) 0.9115, (R3) 0.9183.

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9030 with stop loss at 0.9100 take profit at 0.8869 are recommended.