The AUD/USD pair is now trading in the flat limited by 0.9708-0.9909. The breakout of the flat will show the direction of the med term frend, but so far according to wave long and medium trends are up. The targets above the current price level are Fibonacci expansions off 0.8772-0.9599-0.9462, 0.9462-0.9749-0.9541, 0.9541-0.9916-0.9708.
Resistances:
- 0.9940 = contracted objective point (COP)
- 0.9973 = COP
- 1.0005 = expanded objective point (XOP)
In case the price resumes its corrective decline the nearest supports will be Fibonacci retracements of 0.9708-0.9909, and expansions off 0.9916-0.9708-0.9909.
Supports:
- 0.9832 = .382 retracement
- 0.9809 = .50
- 0.9785-80 = confluence area of .618 ret and COP
Overbought/Oversold
The Detrended Oscillator is below the zero line confirming the flat and weakness of the pair. Assuming that the prevailing trend is up but the pair is in the flat it's preferable to wait for a deeper retracement against one of the Fibonacci supports to enter long.
Read more on how to apply Fibonacci studies to calculate price targets.
