01.04.201400:42 Forex Analysis & Reviews: Elliott Wave Analysis of AUD/USD for April 01, 2014

AUD/USD Elliott Wave
Since our last analysis, the AUD/USD pair has continued to trade downwards, just like we expected, corrective wave (iv) (coloured green) of the bigger wave [iii] (coloured black) has been developing. In the 1-hour chart of the pair, we can see that we have completed corrective wave (iv) few pips below 23.6% of the (iii) wave, this is usual target for the potential end of the (iv) wave, and we are currently in the final (v) of [iii] wave. Intraday traders should look for a buying opportunity towards the 0.9340 level - inverse 161.8% of (iv) wave, while the price remains above Monday's low at the 0.9216 level, and swing traders should wait for a pullback in [iv] wave before we try another long position in the final [v] wave. In accordance with our wave rules and taking into account that wave [iv] should retrace 38.2% of wave [iii], we can define the potential targets with measuring wave [iii] with take profit at 0.9180 (38.2% of wave [iii] ).

Support and Resistance
(S3) 0.9170, (S2) 0.9191, (S1) 0.9228, (PP) 0.9249, (R1) 0.9286, (R2) 0.9307, (R3) 0.9344.

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 0.9270 with stop loss at 0.9216 and take profit at 0.9340 are recommended.