Elliott Wave Analysis of AUD/USD for January 17, 2014

AUD/USD Elliott Wave

Since our last analyses the AUD/USD pair has been trading upwards, corrective wave ii (coloured blue) of thebigger wave (v) (coloured red) has started developing. In the 1-hour chart of the AUD/USD pair we can see that the price is pushing higher from 0.8776, and while the price stays above the 0.8750 we can look for short-termbuying opportunities in the ii wave (coloured blue). To get a fresh entery signals, we are going to wait for anew break above 0.8820 region. In accordance with our wave rules and taking into account that wave 1 shouldretrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.8929(50%of wave 1). Swing traders should wait for the end of the ii wave (coloured blue) before they enter a shortpositions.

Support and Resistance

(S3) 0.8619 (S2) 0.8698 (S1) 0.8759 (PP) 0.8838 (R1) 0.8899 (R2) 0.8978 (R3) 0.9039

Trading forecast

Proceeding from Elliot Wave rules today, the trend is expected to begin the upward movements. That is why longpositions at level 0.8820 with stop loss at 0.8750 and take profit at 0.8929 are recommended.

The material has been provided by InstaForex Company – www.instaforex.com

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