28.08.201211:23 Forex Analysis & Reviews: AUD/CAD Wave Analysis for August 28,2012

AUD/CAD Elliott Wave
Last week the AUD/CAD pair finish the development of the corrective B wave at 1.0430 level and we could observe a strong downward move when developing the final C wave (coloured green) starts. Yesterday during the Asian and European sessions we could observe a descending movement from 1.0340 towards the 1.0280 level. Therefore, during the New York session the AUD/CAD pair continued trading in a bearish mood and the price reached new low at 1.0266 level. At the moment the price is trading around 1.0260 level and we are expecting to see it around 1.0200 today. In accordance with our wave rules and taking into account that the wave 2 retraces 61.8% of the wave 1, we can define the potential targets with Fibonacci Retracement (0.9953-1.0595), with Take Profit at 1.0200 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.0290 level as Stop Loss. Also it is necessary to monitor the CAD Corporate Profits q/q data that can change the rate of the pair.
Support and Resistance
(S3) 1.0220 (S2) 1.0248 (S1) 1.0266 (PP) 1.0294 (R1) 1.0322 (R2) 1.0340 (R3) 1.0368
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0250 with Stop Loss 1.0290 and Take Profit 1.0200 are recommended.