FX.co ★ AUD/USD analysis for August 15, 2013

AUDUSD Elliott Wave
Since our last analyses the AUDUSD pair has been trading higher, just like we expected, corrective wave .a (coloured green) of the bigger wave Y (coloured blue) has been developing. During the Wednesday's Asian and European session we could observe ascending movement from 0.9082 towards the 0.9157 level. Therefore, during the New York session this currency did not manage to hold the highs and price has retraced back to 0.9115 level. At the moment the AUDUSD pair is trading around 0.9169 and we think there is a one more leg to go before wave .a (coloured green) end the cycle.In accordance with our wave rules and taking into account that wave Y should retrace 100% of wave W, we can define the potential targets with measuring wave Y with take profit at 0.9435 (100% of wave W). To reduce the risk, we can use support point at 0.9080 level as stop loss.

Support and Resistance
(S3) 0.9005 (S2) 0.9043 (S1) 0.9083 (PP) 0.9121 (R1) 0.9161 (R2) 0.9199 (R3) 0.9239

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9200 with stop loss at 0.9080 and take profit at 0.9435 are recommended.