01.10.201310:50 Forex Analysis & Reviews: AUD/USD analysis for October 01, 2013

AUD/USD Elliott Wave 
Since our last analyses, the AUDUSD pair has been trading upwards, just like we expected, corrective wave (a) (coloured green) of the bigger wave [5] (coloured black) has been developing. During tMonday's Asian and European sessions we could observe ascending movements from 0.9280 towards the 0.9353 level and we can consider this move as the end of the corrective wave a (coloured blue) of the bigger (a) wave. Therefore, during the early New York session this major currency did not manage to hold this levels and the price retraced back to 0.9310. At the moment, the AUDUSD pair is trading around 0.9396 and we are expecting to see small correction, before the price continues to push higher in the [5] 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 0.9345 (50% of wave A). To reduce the risk, we can use resistance  point at the 0.9430 level as stop loss.

Support and Resistance 
(S3) 0.9211 (S2) 0.9246 (S1) 0.9284 (PP) 0.9319 (R1) 0.9357 (R2) 0.9392 (R3) 0.9430

Trading forecast 
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 0.9430 with stop loss at 0.9200 and take profit at 0.9345 are recommended.