AUD/USD Ready to Push Higher - Analysis for July 10, 2012

AUD/USD Ready to Push Higher - Analysis for July 10, 2012

The AUD/USD pair was trading in a sideways move on Monday developing corrective wave 2 (coloured blue). During the European session, we could observe a descending movement towards the 1.0153 level where this currency pair found support and started pushing higher. We can consider this move as the end of the corrective wave 2 (coloured blue). Therefore, during the New York session the AUD/USD pair continued to its bullish mood from the second half of the EU session and the price retraces back to the open price (around 1.0210 level). Today during the Asian session, the price fell back to the 1.0160 level and we are expecting to see a higher price soon. 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 Fibonacci extensions (0.9968-1.0328-1.0153) with Take Profit 1 at 1.0471 (100% of wave 1) and Take Profit 2 at 1.0694(161.8% of wave 1). Support at 1.0100 can be used as Stop Loss point.
Support and Resistance Levels
(S3) 1.0133 (S2) 1.0155 (S1) 1.0169 (PP) 1.0191 (R1) 1.0213 (R2) 1.0227 (R3) 1.0249
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the upward movement. That is why long positions at level 1.0255 with Stop Loss at 1.0100, Take Profit 1 at 1.0471, and Take Profit 2 at 1.0694 are recommended.



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