AUD/USD Elliott Wave Count for March 23, 2012

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Market Overview
Yesterday the AUD/USD pair was trading within a downward movement. During the European session the major started a descending movement to the 1.0355 level. Therefore, during the New York session we could observe the continuation of the bearish mood; the price reached a new 9-weeks low at 1.0336. The AUD/USD pair did not manage to hold this level and at the end of the New York session the price has moved a bit higher towards1.0385 level. Today during the Asian session we could observe an upward movement to the 1.0420 level.The AUD/USD pair is expected to test 200EMA resistance at 1.0500 level today. Also it is necessary to consider the data concerning the USD New Home Sales that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.0254 (S2) 1.0311 (S1) 1.0345 (PP) 1.0402 (R1) 1.0459 (R2) 1.0493 (R3) 1.0550
AUD/USD Elliott Wave Analysis
The AUD/USD pair has finished A wave (colored pink) of the bigger B wave (colored blue) in the point 1.0636 and wave B (colored pink) in the point 1.0335 level. Presently we can observe the beginning of the final C wave of the bigger B wave. Proceeding from our wave rules and considering that the wave C is equal to the A wave, we can define the potential targets with the help of Fibonacci extension (1.0422-1.0636-1.0335) with first Take Profit at level 1.0550 (100% of the wave A) and second Take Profit at 1.0650 (161.8% of the wave A). For Stop Loss we can use 1.0335 invalidation point.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin an upward movement. That is why long positions at levels 1.0490 with Stop Loss at 1.0335,Take Profit 1.0550 and Take Profit 2 at 1.0650 are recommended.