AUD/USD is still trading in the range limited by 1.0002 and 0.9651. According to wave count on dailies the current wave down is corrective wave 4. Within this wave 4 there's subwave B developing - colored royal blue in the chart. However to confirm that this wave is B break below 0.9651 is needed. In case the price breaks above 1.0002 this wave will be considered wave A within daily wave 5.
So far the targets above the current price level are Fibonacci expansions off 0.9651-0.9819-0.9678, 0.9678-0.9821-0.9788.
Resistances:
- 0.9931 = objective point (OP)
- 0.9950 = expanded objective point (XOP)
- 1.0019 = XOP
In case the price reverses down the nearest supports will be Fibonacci retracements of the wave up starting from 0.9678 (wave not developed yet).
Overbought/Oversold
The Detrended Oscillator is above the zero level with two latest peaks showing a divergence with the price. This may be an early indication of a reversal. Assuming that the long term uptrend needs confirmation above 1.0002 it's preferable to seek for topping signals to enter short in the vicinity of a Fibonacci resistance (see listed above) or when the price hits an overbought level - 15-25 pips to go.
Read more on how to apply Fibonacci studies to calculate price targets.
