Australlian dollar is still developing medium and long term uptrend. Wave count shows that this pair is moving within daily wave C - colored light green in the chart. Within the latter there's a set of A-B-C waves of smaller degree, with subwave C developing - colored royal blue in the chart.
The targets of the upmove are Fibonacci expansions of the daily waves and subwaves 0.8772-0.9599-0.9462, 0.9462-0.9749-0.9541, and expansions off still smaller waves 0.9541-0.9780-0.9727, 0.9727-0.9790-0.9756.
Resistances:
- 0.9875 = contracted objective point (COP)
- 0.9921 = super expanded objective point (SXOP)
- 0.9966-73 = confluence area of objective point (OP) and COP
- 1.0005 = expanded objective point (XOP)
In case the price reverses for a correction the supports will be Fibonacci retracements of the wave up from 0.9727 (wave not developed yet).
Overbought/Oversold
The Detrended Oscillator is making a second attempt to get into the oversold. Assuming that the prevailing trend is up the current contitions are not yet ripe for a new long position. It's preferable to wait for a weakness - oversold condition or a Fibonacci support - to enter a new long.
Read more on how to apply Fibonacci studies to calculate price targets.
