08.10.201211:15 Forex Analysis & Reviews: AUD/USD Wave Analysis for October 08,2012

Long-term review

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AUD/USD Elliott Wave
Last week the AUD/USD pair was trading in a downward move, developing impulsive wave 3 (coloured blue) of the bigger wave (3) (coloured green). During the Friday's Asian and European sessions we could observe sideways movement between 1.0272 and 1.0240 level. Therefore, during the early New York session the AUD/USD pair broke support and price reached a new low at 1.0152 level. This currency pair is trading around 1.0165 level at the moment and we are expecting to see price higher today when development of the wave 4 (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 1.0250 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0125 level as Stop Loss. Also it is necessary to monitor AUD RBA Gov Stevens Speaks and ANZ Job Advertisements m/m data that can change the rate of the pair.
Support and Resistance
(S3) 1.0009 (S2) 1.0080 (S1) 1.0132 (PP) 1.0203 (R1) 1.0255 (R2) 1.0326 (R3) 1.0378
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0180 with Stop Loss 1.0125 and Take Profit at 1.0250 are recommended.

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