AUD/USD Possibly lower within new correction - Analysis for July 6, 2012

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AUD/USD Elliott Wave
Since yesterday the AUD/USD pair was trading in an upward move developing final 5 wave of the bigger wave 1 (coloured blue). During the European session we could observe an ascending movement toward the 1.0328 level. We can consider this move as the end of the impulsive wave 1 (coloured blue). Therefore, during the New York session this currency pair started pushing lower and price reached 1.0250 level. Today the AUD/USD pair continued trading in a bearish mood and price is currently testing 100 EMA support level. At the moment we can observe the beginning of wave 2 and we are expecting to see price under 1.0250 level today. In accordance with our wave rules and taking into account that the wave 2 retraces 61.8% of the wave 1, we can define the potential targets with Fibonacci Retracements (0.9968-1.0328) with Take Profit 1 at 1.0148 (50% of wave 1) and Take Profit 2 at 1.0106(61.8% of wave 1). Resistance point at 1.0330 can be used as a Stop Loss point.
Support and Resistance Levels
(S3) 1.0199 (S2) 1.0232 (S1) 1.0252 (PP) 1.0286 (R1) 1.0319 (R2) 1.0339 (R3) 1.0373
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the downward movement. That is why short positions at level 1.0240 with Stop Loss at 1.0330 Take Profit 1 at 1.0148 and Take Profit 2 at 1.0106 are recommended.