AUD/USD is moving within potential wave C of medium term downtrend - colored red in the chart. To confirm this wave break below 0.9833 is needed. Otherwise the current wave down will remain B with the potential of wave C up.
At this moment the targets of the downmove are Fibonacci retracements of 0.9539-1.0031, and expansions off 1.0031-0.9833-0.9930.
Supports:
- 0.9808 = contracted objective point (COP)
- 0.9785 = .50 ret
- 0.9732-27 = confluence area of objective point (OP) and .618 retracement
If the price keeps its advance the nearest resistances will be Fibonacci retracements of 1.0031-0.9833, and expansions off 0.9833-0.9930-0.9843.
Resistances:
- 0.9932-40 = confluence area of .50 retracement and objective point (OP)
- 0.9955 = .618 ret
- 1.0000 expanded objective point (XOP)
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to use overbought readings of the Detrended Oscillator in conjunction with Fib resistances (see above). The overbought area is still 15-25 pips away and that doesn't correspond to any retracement, so stand aside in the meantime.
Read more on how to apply Fibonacci studies to calculate price targets.
