AUD/USD Elliott Wave Count for March 12, 2012

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Market Overview
On Friday during the European session the AUD/USD pair was trading in a downward trend and reached support level 1.0610 (50 EMA). During the New York session the AUD/USD pair pushed few pips higher before the price continued the movement within the bearish mood. The AUD/USD pair finished Friday's trading day at daily low at 1.0570. Today in the early Asian session we could observe continuation of the bearish mood. Today the AUD/USD pair is expected to test 1.0600 level.Also it is necessary to consider the data concerning the USD Federal Budget Balance that could affect the rate of the pair.
Support and Resistance levels
(S3) 1.0501 (S2) 1.0539 (S1) 1.0563 (PP) 1.0600 (R1) 1.0638 (R2) 1.0662 (R3) 1.0699
AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished the wave 1 of the bigger wave 5 in the point 1.0669 and the wave 2 in the point 1.0516. Presently we can observe the beginning of the wave 3. 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 help of Fibonacci extension (1.0508-1.0669-1.0516) with first Take Profit at level 1.0677(100% of the wave 1) and second Take Profit at 1.0776 (161.8% of the wave 3). For Stop Loss we can use the invalidation point at level 1.0508.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 1.0550 with Stop Loss at 1.0508, Take Profit at 1.0677 and Take Profit 2 at 1.0776 are recommended.