AUD/USD, according to wave count, is developing corrective wave B to the med term downtrend 0.9221-0.8861. The targets of the upside movement are retracements of this wave:
- 0.9083 = .618 retracement, is still intact
The targets of the downside movement are Fibonacci retracements of 0.8861-0.9078, and expansions off 0.9078-0.8972-0.9021:
- 0.8944 = .618 ret, the price reversed within 3 pips of that level
- 0.8915 = objective point (OP)
- 0.8849 = expanded objective point (XOP)
In case the price breaks under 0.8861, the strategic targets will be Fibonacci expansions off waves AB - 0.9221-0.8861-0.9078 (see the magenta waves):
- 0.8856 = contracted objective point (COP)
- 0.8718 = OP
Overbought/Oversold
The Detrended Oscillator is moving into the overbought area which is still some 10-20 pips above the current price. The nearest oversold area is 30-40 pips under as of now. Assuming that the major thrend is down but the pair is trading in a flat - it's good to wait until the situation clears out.
