AUD/USD is now developing wave 5 of the intermediate uptrend (colored red on the chart). The targets of the upside movement are Fibonacci expansion points off waves 1-2 (0.8314-0.8556-0.8446) and 3-4 (0.8446-0.8787-0.8682).
The nearest price targets above the current level are:
- 0.8838 = expanded objective point (XOP), reached already
- 0.8893 = contracted objective point (COP)
- 0.9023 = objective point (OP)
However the intermediate trend is now being corrected. And the targets of the corrective wave B (colored yellow on the chart) are Fib retracement point of 0.8682-0.8849:
- 0.8785 = .382 retracement
- 0.8765 = .50 ret
- 0.8746 = .618 ret
Overbought/Oversold
The Detrended Oscillator is moving into the oversold area. However combined with Fibonacci studies, the best levels to search for reversal signals for buys are 0.8785 and 0.8765 as they're the nearest Fibonacci supports.
