FX.co ★ AUD/USD analysis for October 03, 2013

AUD/USD Elliott Wave
Since our last analyses the AUDUSD pair has been trading downwards, corrective wave (x) of the bigger wave [5] (coloured black) has been developing. During Wednesday's Asian and European sessions, we could observe descending movement from 0.9408 towards the 0.9332 level and we can consider this move as the end of the wave C (coloured blue) of the (x) wave (coloured green). Therefore, during the New York session this major pair did not manage to hold this level and the price retraced back to the 0.9392 level. At the moment, the AUDUSD pair is trading around 0.9395 and we are expecting to see more bullish movements in the [5] wave. In accordance with our wave rules and taking into account that wave C should retrace 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9542 (123.6% of wave A). To reduce the risk, we can use resistance point at the 0.9332 level as stop loss.

Support and Resistance
(S3) 0.9264 (S2) 0.9299 (S1) 0.9341 (PP) 0.9376 (R1) 0.9418 (R2) 0.9453 (R3) 0.9495

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 0.9400 with stop loss at 0.9332 and take profit at 0.9542 are recommended.