FX.co ★ AUD/USD analysis for June 06, 2013

AUD/USD Elliott Wave
Since our last analyses the AUD/USD pair has been trading downwards, just like we expected, impulsive wave (5) (coloured blue) of the bigger wave C (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 0.9657 towards the 0.9550 level. Therefore, during the early New York session this currency has continued trading in a bearish mood and the price has reached a new daily low at 0.9510 level. At the moment the AUD/USD pair is testing yesterday's low and we expect to see the price lower for the next few days. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9357 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9615 level as stop loss.
Support and Resistance
(S3) 0.9337 (S2) 0.9423 (S1) 0.9483 (PP) 0.9569 (R1) 0.9629 (R2) 0.9715 (R3) 0.9775
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 0.9547 with stop loss at 0.9615 and take profit at 0.9357 are recommended.