FX.co ★ AUD/USD Elliott Wave Count for March 8, 2012

Market Overview
Yesterday the AUD/USD pair was trading within the upward movement. During the Asian session the major started the ascending movement to the 1.0580 level.Therefore, during the New York session the AUD/USD pair reached a new daily high at the 1.0590 level.Today during the Asian session we could observe the slight downward move to the support level1.0533.The AUD/USD did not manage to hold this level; the price continued is moving in the bullish mood. Today the AUD/USD pair is expected to test the 1.0665 level, but it is also necessary to consider the data on the USA Unemployment Claims as it can affect the rate of the pair.

Support and Resistance levels
(S3) 1.0478 (S2) 1.0510 (S1) 1.0530 (PP) 1.0562 (R1) 1.0594 (R2) 1.0614 (R3) 1.0646

AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished the wave 1 of the bigger wave 1 in the point 1.05830, and the wave 2 in the point 1.0533. Presently we can observe the wave 3. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with help of Fibonacci extension (1.0508-1.05830-1.0533): Take Profit is to be placed at 1.0652 level (161.8% of (1) wave). For Stop Loss we can use the support level 1.0570.

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 1.0600 with Stop Loss at 1.0570 and Take Profit at 1.1.0652 are recommended.