FX.co ★ AUD/USD analysis for August 20, 2013

AUDUSD Elliott Wave
Since our last analyses the AUDUSD pair has been trading downwards, we are counting this movements as FLAT .B wave (coloured green) of the bigger Y wave (coloured blue). During the Monday's Asian and European session European session we could observe strong descending movement from 0.9232 towards the 0.9134 level. Therefore, during the New York session this bearish mood in AUDUSD continue to move the market and we price makes a new daily low at 0.9100 level.At the moment price is trading around 0.9035 and we are expecting to see one more push higher in the next few sessions.In accordance with our wave rules and taking into account that wave W should retrace 100% of wave Y, we can define the potential targets with measuring wave W with take profit at 0.9433 (100% of wave Y). To reduce the risk, we can use support point at 0.8980 level as stop loss.

Support and Resistance
(S3) 0.8936 (S2) 0.9019 (S1) 0.9066 (PP) 0.9149 (R1) 0.9196 (R2) 0.9279 (R3) 0.9326

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9150 with stop loss at 0.8980 and take profit at 0.9433 are recommended.