17.04.201411:31 Forex Analysis & Reviews: Elliott Wave Analysis of AUD/USD for April 17, 2014

AUD/USD Elliott Wave
In our last analysis of the AUD/USD pair, we have presented two possible counts, and strong move lower in the last few days has made us go with alternate scenario. In the 30-minutes charts above, we can see three waves lower from the 0.9460 level, and this can be enough to call the corrective wave (iv) (coloured blue) complete cycle. While price remain above the low at the 0.9330 level, we are going to look for more upside movements in the iii of (v) wave. In accordance with our wave rules and taking into account that wave (iii) should extend 161.8% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 0.9447 (161.8% of wave (i)).

Alternate count: Since yesterday's move has taken a shape of the diagonal pattern, we must be careful with the 0.9409 level, this is the place where corrective wave (iv) can extend and turn into a double three correction. If this count takes place, next buying area will come from the 0.9278 level.

Support and Resistance
(S3) 0.9282, (S2) 0.9307, (S1) 0.9338, (PP) 0.9363, (R1) 0.9394, (R2) 0.9419, (R3) 0.9450.

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 0.9350 top loss at 0.9330 and take profit at 0.9448 are recommended.