FX.co ★ AUD/USD analysis for August 21, 2013

AUDUSD Elliott Wave
From the start of this week the AUDUSD pair has been trading downwards, we are still tracking the bearish movement from 0.9232 as potential FLAT .B wave (coloured green) of Y wave (coloured blue). Yesterday, during the Asian and early European session we could observe descending movement from 1.0120 towards the 1.0251 level. Therefore, during the New York session this major currency did not manage to hold around the lows and price has retraced back to 0.9097 level.At the moment the AUDUSD pair is trading around 0.9035 and we are expecting to see price higher for the next few days now.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.

Alternation: We are still in the X cycle, we should still have pullback but if this count take a place i would look for 50% retracements from 0.9232 - 0.9017 and than another push lower.

Support and Resistance
(S3) 0.8914 (S2) 0.8970 (S1) 0.9020 (PP) 0.9076 (R1) 0.9126 (R2) 0.9182 (R3) 0.9232

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9050 with stop loss at 0.8980 and take profit at 0.9433 are recommended.