Australian dollar is developing wave 5 of the daily uptrend (colored royal blue on the chart). Within this wave we have a set of 3 waves - A-B and C developing (colored red on the chart). Within the subwave C there's also a set of 4 subwaves (colored yellow).
The targets of the advance are Fibonacci expansions off daily waves 1-2 (0.8772-0.9183-0.9091), waves 3-4 (0.9091-0.9599-0.9462), and waves of smaller degree - 0.9462-0.9644-0.9558, 0.9558-0.9638-0.9589.
Resistances:
- 0.9718 = expanded objective point (XOP)
- 0.9740 = objective point (OP)
- 0.9756 = XOP
- 0.9776 = contracted objective point (COP)
- 0.9798 = super expanded objective point (SXOP)
In case the price turns down for a short term corrective wave the nearest supports are Fibonacci retracements of 0.9558-0.9686.
Supports:
- 0.9637 = .382 retracement
- 0.9622 = .50 ret
- 0.9601 = .618 ret
Daily wave 5 ends when its base (0.9462) is exceeded by the price.
Overbought/Oversold
The Detrended Oscillator has just came back from the overbought to the zero level, confirming the corrective wave. Assuming that the prevailing trend is up it's advisable to seek for bottoming signals when the price hits a Fibonacci support (see listed above) or gets into the oversold - 35-45 pips below the current price.
Read more on how to apply Fibonacci studies to calculate price targets.
