FX.co ★ Elliott Wave Analysis of AUD/USD for April 22, 2014

AUD/USD Elliott Wave
Last week, the AUD/USD pair has been trading downwards, corrective wave [iv] (coloured green) of the bigger wave C (coloured red) has been developing. In the 1-hour chart above, we can observe that descending movements from the 0.9459 level has already a 7 swings, and we are going with idea that the corrective wave [iv] is already over at the moment. While price remain above the 0.9314 level, we are going to look for a buying opportunity at the next pullback. In accordance with our wave rules and taking into account that wave [v] should extend 161.8% of wave [iv], we can define the potential targets with measuring wave [iv] with take profit at 0.9550 (161.8% of wave [i]).

Alternate Count: We are currently in the corrective b of (y), break below the 0.9314 will open more room for downside movement, and if this count take a place we are going to look for a buying opportunity around the 0.9260 area.

Support and Resistance
(S3) 0.9279, (S2) 0.9297, (S1) 0.9311, (PP) 0.9329, (R1) 0.9343, (R2) 0.9361, (R3) 0.9375.

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upward movements. That is why long position at level of 0.9340 with stop loss at 0.9314 take profit at 0.9550 are recommended.