FX.co ★ AUD/USD analysis for November 12, 2013

AUD/USD Elliott Wave
For the past few weeks the AUDUSD pair has been trading downwards, we are looking at the move from 0.9754 as Zig-Zag correction inside the b wave (coloured red). During the Monday’s Asian and European sessions we could observe strong descending movements from 0.9389 towards the 0.9355 level. Therefore, during the New York session this major currency has continued trading in a bearish move and the price has reached a new session’s low at 0.9434 level. At the moment the AUDUSD pair is trading around 0.9327 and we would like to see the end of the b wave and push higher in the next 24 hours, so our strategy for today will be only to look for long position. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A we can define the potential targets with measuring wave A with take profit at 1.0193 (100% of wave A). To reduce the risk, we can use support point at 0.9150 level as stop loss.

Support and Resistance
(S3) 0.9293 (S2) 0.9318 (S1) 0.9339 (PP) 0.9364 (R1) 0.9385 (R2) 0.9410 (R3) 0.9431

Trading forecast
Proceeding from Elliot Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 0.9300 with stop loss at 0.9150 and take profit at 1.0193 are recommended.