15.10.201310:21 Forex Analysis & Reviews: AUD/USD analysis for October 15, 2013

Long-term review

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AUD/USD Elliott Wave
Since our last analyses, the AUDUSD pair has been trading upwards, just like we expected, final .C wave (coloured balck) of the bigger wave Y (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe ascending movements from 0.9425 towards the 0.9483 level. Therefore, during the New York session this major pair continued trading in a bullish mood and the price has made a new high at the 0.9517 level. At the moment, the AUDUSD pair is trading around 0.9533 and we are expecting to see the price dropping any time soon in the b wave. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9195 (50% of wave A). To reduce the risk, we can use invalidation point at the 0.9600 level as stop loss.

Support and Resistance
(S3) 0.9363 (S2) 0.9396 (S1) 0.9441 (PP) 0.9474 (R1) 0.9519 (R2) 0.9552 (R3) 0.9597

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 0.9490 with stop loss at 0.9600 and take profit at 0.9195 are recommended.

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