AUD/USD is still continuing a strong medium term uptrend. We have a set of 5 major waves (colored magenta), and corrective wave A is just beginning. The targets of this corrective downside movement are Fibonacci retracements of 0.8772-0.9456, 0.9091-0.9456, and expansions off minor A-B waves (colored yellow) 0.9456-0.9342-0.9421.
Supports:
- 0.9317-07 = confluence area of objective point (OP) and .382 retracement
- 0.9274 = .50 ret
- 0.9237-30 = confluence area of expanded objective point (XOP) and .618 ret
- 0.9195 = .382 ret (major)
- 0.9123 = confluence area of super expanded objective point (SXOP) and .50 ret (major)
- 0.9033 = .618 ret (major)
In case the price resumes the uptrend the nearest resistances will be Fibonacci expansions off 0.8772-0.9032-0.8862 (waves 1-2 - colored magenta), 0.8862-0.9183-0.9091 (waves 3-4).
Resistances:
- 0.9543 = SXOP
- 0.9610 = XOP
Overbought/Oversold
The Detrended Oscillator is in the oversold. Assuming that a corrective wave of a larger degree may be starting, it's advisable to stand aside until the price reaches a Fib support. Then look for bottoming signals to enter long.
