FX.co ★ AUD/USD analysis for November 1, 2013

AUD/USD Elliott Wave
The whole week the AUDUSD pair has been trading downwards, 5 impulsive waves in the wave [a] (coloured black) of the bigger wave b (coloured red) has been developing. Yesterday, during the Asian and European sessions, we could observe ascending movement from 0.9455 towards 0.9523. Therefore, during the early New York session this major pair did not manage to hold around the highs, and the price has dropped to the 0.9441 level. At the moment, the AUDUSD pair is trading around the 0.9485 level, and we should see more upwards movements in the next few days. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define potential targets with measuring wave A with take profit at 0.9598 (50% of wave w). To reduce the risk, we can use support point at the 0.9430 level as stop loss.

Support and Resistance
(S3) 0.9354, (S2) 0.9403, (S1) 0.9428, (PP) 0.9477, (R1) 0.9502, (R2) 0.9551, (R3) 0.9576.

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 0.9500 with stop loss at 0.9430 and take profit at 0.9598 are recommended.