AUD/USD is developing corrective wave 4 of the medium term uptrend - colored red in the chart. Within this wave 4 there are A-B-C subwaves, with subwave C still developing - they're colored yellow in the chart. The targets of wave 4 are Fibonacci retracements of 0.9833-0.9995, 0.9843-0.9995, 0.9920-0.9995, and expansions off 0.9995-0.9958-0.9992.
Supports:
- 0.9955-49 = confluence area of objective point (OP) and .618 retracement
- 0.9937-33-32 = confluence area of .382 retracements and expanded objective point (XOP)
- 0.9919-14 = .50 ret
- 0.9901-0.9895 = confluence area of super expanded objective point (SXOP) and .618 retracements
If the price keeps advancing its targets above 0.9995 will be expansions off 0.9539-1.0031-0.9833, 0.9833-0.9930-0.9843.
Resistances:
- 1.0000 = expanded objective point (XOP)
- 1.0097 = SXOP
- 1.0137 = contracted objective point (COP)
Overbought/Oversold
Assuming that this currency pair is trading in a flat, it's preferable not to use the readings of the Detrended Oscillator and wait until the flat is broken either up (for wave 5) or down - to continue wave 4.
Read more on how to apply Fibonacci studies to calculate price targets.
