AUD/USD is moving within potential subwave C (colored red in the chart) of corrective wave B of a larger degree (colored magenta). Break below 0.9755 is needed to confirm subwave C.
At this moment the price targets below the current level are Fibonacci retracements of 0.9539-0.9967, 0.9755-0.9899, and expansions off 0.9967-0.9755-0.9899, 1.0182-0.9539-0.9967.
Supports:
- 0.9827 = .50 retracement
- 0.9810 = .618 ret
- 0.9768 = contracted objective point (COP)
- 0.9753 = .50 ret
- 0.9702 = .618 ret
- 0.9687 = objective point (OP)
- 0.9570 = COP
- 0.9556 = expanded objective point (XOP)
If the price breaks above 0.9899 to continue the uptrend the nearest strategic resistances will be Fibonacci expansions off 0.9539-0.9967-0.9755.
Resistances:
- 1.0020 = COP
- 1.0183 = OP
Overbought/Oversold
The pair is trading in a very narrow range, therefore it's preferable to stand aside and not use the Detrended Oscillator which is flattening around the zero level. The overbought area is 20-30 pips above the current price, the oversold is the same - 20-30 pips below the current price.
Read more on how to apply Fibonacci studies to calculate price targets.
