AUD/USD Above 1.0350 Today - Analysis for July 4, 2012

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AUD/USD Elliott Wave
Since yesterday the AUD/USD pair was trading in a slight upward move, developing final wave 5 of the bigger wave 1 (coloured blue). During the European session we could observe descending movement toward the 1.0245 level. Therefore, during the New York session the AUD/USD pair did not manage to hold this level and we could observe upward move that brings this pair to the new daily high 1.0295. Today during the Asian session we could observe continuation of the bullish mood and today we are expecting to see the end of the 5 impulsive wave (coloured pink). In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets measuring 1 wave with Take Profit at 1.0369 (100% of wave 1). Support at 1.0245 can be used as a Stop Loss point. Also it is necessary to know that U.S. banks have holidays so we can’t expect to see much volatility today in NY session.
Support and Resistance Levels
(S3) 1.0174 (S2) 1.0205 (S1) 1.0241 (PP) 1.0269 (R1) 1.0308 (R2) 1.0336 (R3) 1.0375
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 1.0300 with Stop Loss at 1.0245 and Take Profit at 1.0369 are recommended.