AUD/USD is moving within corrective wave against 1.0182-0.9727. Now subwave C (colored red) is developing. Its targets are Fibonacci retracements of 1.0182-0.9727, and expansions off 0.9727-0.9914-0.9815.
Resistances:
- 0.9931 = contracted objective point (COP), reached already (!)
- 0.9954 = .50 ret
- 1.0002-08 = confluence area of objective point (OP) and .618 ret
If the price reverses down the nearest supports will be Fibonacci retracements of 0.9727-0.9948.
Supports:
- 0.9864 = .382 ret
- 0.9838 = .50 ret
- 0.9811 = .618 ret
Overbought/Oversold
The Detrended Oscillator has made a huge peak that confirms the strength of the midterm uptrend. However, assuming that the trend up is a corrective wave of large degree one should be cautious when the price approaches a significant Fib resistance. Topping signals around these levels can be used to initiate shorts.
Read more on how to apply Fibonacci studies to calculate price targets.
