Elliott Wave Analysis of AUD/USD for January 23, 2014 2014-01-23 AUDifx.png AUD/USD Elliott Wave Since our last analyses the AUD/USD pair has been trading upward, corrective wave ii (coloured blue)has completed the cycle from 0.8755 at the 0.8887 level, and we should see more downward movements inthis iii wave that is currently developing. In the 1-hour chart we can see that after the flat patternin the ii wave we have the strong sell-off in the AUD/USD, now while the price stays below the last high atthe 0.8887 we are going to look for a selling opportunity in this pair. In accordance with our waverules and taking into account that wave 3 should retrace minimum 100% of wave 1, we can define thepotential targets with measuring wave 1 with take profit at 0.8558 (100% of wave 1). The RSI indicatorshould provide a divergence at the end of the iii wave, so if we see a 5 wave move and divergence onthe 1-hour chart we are going to close our shorts before we see price at the 0.8558 level. Support and Resistance (S3) 0.8694, (S2) 0.8740, (S1) 0.8796, (PP) 0.8842, (R1) 0.8898, (R2) 0.8944, (R3) 0.9000. Trading forecast Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That iswhy short positions at the level of 0.8810 with stop loss at 0.8887 and take profit at 0.8558 arerecommended. Elliott Wave Analysis of USD/CAD for January 23, 2014 2014-01-23 CADifx.png USD/CAD Elliott Wave For the last couple of days, the USD/CAD pair has been trading upward, just like we expected, impulsive wave iii (coloured blue) of the bigger wave (c) (coloured red) has been developing. In the 1-hour chart of the USD/CAD pair we can see that the strong ascending movements from 1.0951 represent impulsive wave iii (coloured blue), we should already be in the corrective wave iv at the moment, but while price stays above 1.0950 we are still expecting to see one more push higher and that is why long positions are going to be our game plan for today. In accordance with our wave rules and taking into account that wave (C) should retrace 100% of wave (A), we can define the potential targets with measuring wave (A) with take profit at 1.1200 (100% of wave (A)). Swing traders can also try the same position since next clear swing signal will come only after wave (C) complete the cycle. Support and Resistance (S3) 1.0858, (S2) 1.0905, (S1) 1.0996, (PP) 1.1043, (R1) 1.1134, (R2) 1.1181, (R3) 1.1272. Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.1077 with stop loss at 1.1040 and take profit at 1.1200 are recommended.
Posted on: Thu, 23 Jan 2014 10:08:37 +0000
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