AUD/USD is developing a strong medium term downtrend within wave C - colored magenta in the chart. On smaller scale this wave consists of A-B subwaves and potential subwave C is still developing. Break below 0.9825 will confirm subwave C - colored red in the chart.
The targets below the current price are Fibonacci expansions off 1.0182-0.9974-1.0091 (A-B waves of the med term trend), 1.0091-0.9825-0.9943 (A-B subwaves), and 0.9943-0.9839-0.9901.
Supports:
- 0.9797 = objective point (OP)
- 0.9779 = contracted objective point (COP)
- 0.9754 = expanded objective point (XOP)
- 0.9733 = XOP
- 0.9766 = OP
- 0.9629 = super expanded objective point (SXOP)
If the price doesn't break below 0.9825 and reverses up for a correction the nearest resistances will be Fibonacci retracements of 1.0091-0.9825.
Resistances:
- 0.9927 = .382 retracement
- 0.9958 = .50 ret
- 0.9989 = .618 ret
Overbought/Oversold
The Detrended Oscillator is going into the oversold area, and, assuming that the prevailing trend is down, it's preferable to seek for shorts on recovery. Fibonacci retracements of overbought area are good levels to act on.
Read more on how to apply Fibonacci studies to calculate price targets.
