On larger timeframes AUD/USD is moving within wave C of daily degree (the wave and expansions off A-B waves are colored royal blue in the chart). Within this wave there's a sequence of 5 subwaves (colored red in the chart) with subwave 5 still developing. On still smaller scale subwave 5 has A-B-C waves of smaller degree in it - colored orange red.
The targets above the current price level are Fibonacci expansions off 0.9539-1.0031-0.9833 (waves A-B of larger degree, daily), 0.9833-0.9930-0.9843 (waves 1-2), 0.9843-0.9995 (waves 3-4), 0.9953-1.0051-1.0008 (subwaves A and B in 5).
Resistances:
- 1.0069 = contracted objective point (COP), hit precisely (!)
- 1.0094 = super expanded objective point (SXOP)
- 1.0105-06 = confluence area of two objective points (OP)
- 1.0137 = COP
If the price reverses down for a correction the nearest supports will be Fibonacci retracements of the wave up starting from 0.9953 - this wave is not developed yet.
Overbought/Oversold
Assuming that the prevailing trend is up it's preferable to use oversold readings of the Detrended Oscillator in conjunction with Fib supports. The oversold area is 10-15 pips away from the current price.
Read more on how to apply Fibonacci studies to calculate price targets.
