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FX.co ★ AUD/USD analysis for August 05, 2013

AUD/USD analysis for August 05, 2013

AUD/USD analysis for August 05, 2013

AUDUSD Elliott Wave
Last week the AUDUSD pair traded downwards, just like we had expected, impulsive wave 3 (coloured blue) of the bigger wave (5) (coloured green) was developing. During the Friday's Asian and European sessions we could observe ascending movement from 0.8888 towards the 0.8968 level and we can consider this move as the end of the corrective wave .4 (coloured green) of the bigger wave 3 (coloured blue). Therefore, during the New York session this currency did not managed to hold this level and the price retraced back to 0.8869 level. At the moment the AUDUSD pair is trading around 0.8899 and we expect to see the price higher for the next few days. In accordance with our wave rules and taking into account that wave 4 should retrace 38.2 of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9018 (38.2% of wave 3). To reduce the risk, we can use support point at 0.8800 level as stop loss.

Support and Resistance
(S3) 0.8759 (S2) 0.8814 (S1) 0.8858 (PP) 0.8913 (R1) 0.8957 (R2) 0.9012 (R3) 0.9056

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.8900 with stop loss at 0.8800 and take profit at 0.9018 are recommended.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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