According to wave count 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-C subwaves (colored magenta) with wave C developing. Within the latter wave C there's a set of 2 subwaves with wave B developing (colored red on the chart).Subwave C will be confirmed on 0.9749 break.
The targets of the corrective subwave are Fibonacci retracements of 0.9624-0.9749 and expansions off 0.9749-0.9683-0.9731.
Supports:
- 0.9687 = .50 retracement
- 0.9672-65 = confluence area of .618 ret and objective point (OP)
- 0.9624 = expanded objective point (XOP)
In case the price resumes the upmove - breaking above 0.9749 - the nearest targets will be Fibonacci expansions off daily waves 1-2 (0.8772-0.9183-0.9091), waves 3-4 (0.9091-0.9599-0.9462), and hourly A-B (0.9462-0.9749-0.9624).
Resistances:
- 0.9756 = XOP
- 0.9776 = contracted objective point (COP)
- 0.9801 = COP
Overbought/Oversold
The Detrended Oscillator is standing at the zero level. Assuming that the downmove is corrective and the prevailing trend is up it's advisable to seek for longs when the price hits a Fibonacci support or gets into the oversold - 15-25 pips below the current price.
Read more on how to apply Fibonacci studies to calculate price targets.
