Australian dollar is developing wave 5 of the daily uptrend - colored royal blue on the chart. Within this wave there's a set of A-B subwaves (colored magenta) with wave B developing. Within the latter wave B there's a set of 3 subwaves with wave C developing. To confirm it a break below 0.9624 is needed.
The targets of the corrective decline are Fibonacci retracements of wave A - 0.9462-0.9733, subwave C within wave A - 0.9558-0.9733, and expansions off the subwaves within wave B - 0.9733-0.9624-0.9701.
Supports:
- 0.9634 = contracted objective point (COP)
- 0.9598-92 = confluence area of .50 retracement and objective point (OP)
- 0.9566 = .618 ret
- 0.9525 = expanded objective point (XOP)
- 0.9416 = super expanded objective point (SXOP)
In case the advance continues the nearest targets remain unchanged - Fibonacci expansions off daily waves 1-2 (0.8772-0.9183-0.9091), waves 3-4 (0.9091-0.9599-0.9462).
Resistances:
- 0.9756 = XOP
- 0.9776 = contracted objective point (COP)
Overbought/Oversold
The Detrended Oscillator is moving into the oversold, confirming the corrective movement. Assuming that the decline is considered corrective it's advisable to stand aside until the upside impulse wave reveals itself. Seek for bottoming signals when the price hits a Fibonacci support - see listed above.
Read more on how to apply Fibonacci studies to calculate price targets.
