18.11.201311:20 Forex Analysis & Reviews: AUD/USD analysis for November 18, 2013

AUD/USD Elliott Wave 
Since our last analyses, the AUDUSD pair has continued trading upwards, impulsive wave iii (coloured blue) of the bigger wave [a] (coloured black) has been developing. During Friday's European session, we could observe descending movements from 0.9350 towards the 0.9309 level. Therefore, during the early New York session this major currency did not manage to hold this levels and the price retraced back to 0.9375. At the moment, the AUD/USD pair is trading around the 0.9415 level, and we are looking for one more upward movement in the next couple of sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9453 (161.8% of wave A). To reduce the risk, we can use support point at the 0.9400 level as stop loss.

Alternate view: We are still in the v wave (coloured blue) of the wave B, and we should see one more push lower to 0.9215, before the price turn higher, but in any case, we should see more upward movements in the next few sessions.

Support and Resistance 
(S3) 0.9256, (S2) 0.9281, (S1) 0.9325, (PP) 0.9350, (R1) 0.9394, (R2) 0.9419, (R3) 0.9463.

Trading forecast 
Proceeding from Elliot Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 0.9415 with stop loss at 0.9400 and take profit at 0.9453 are recommended.