AUD/USD is developing wave C of daily degree - colored royal blue in the chart. On smaller timeframes it consists of A-B-C subwaves - colored red in the chart - with subwave C developing. The targets of this downmove are Fibonacci expansions off daily waves 1.0182-0.9727-0.9956, hourly 0.9956-0.9711-0.9855, and still smaller waves 0.9855-0.9764-0.9834 (colored orange red in the chart).
Supports:
- 0.9687 = expanded objective point (XOP)
- 0.9675 = contracted objective point (COP)
- 0.9610-0.9596 = confluence area of objective point (OP) and super expanded objective point (SXOP)
- 0.9501 = OP
If the price starts reversing up the nearest resistances will be retracements of the wave down from 0.9834 - this wave is not developed yet.
Overbought/Oversold
The Detrended Oscillator is firmly establishing itself below the zero level which is a confirmation of a strong downtrend. Assuming that the larger trend is down it's preferable not to chase the current move but to wait for a recovery to go short. Stand aside since there are no Fib resistances available yet.
Read more on how to apply Fibonacci studies to calculate price targets.
