The AUD/USD is movign within corrective subwave B (colored orange red in the chart) of potential impulse wave C (colored red in the chart) of medium term uptrend. The targets of the upmove are Fibonacci retracements of 1.0255-0.9803 and expansions off 0.9803-1.0019-0.9855, 0.9855-0.9967-0.9897.
Resistances:
- 1.0009 = objective point (OP)
- 1.0029 = .50 retracement
- 1.0071-78-82 = confluence area - OP, expanded objective point (XOP), .618 retracement
if the price resumes the downtrend the nearest resistances will be Fibonacci expansions off 1.0255-0.9803-1.0019, 1.0019-0.9855-0.9967.
Supports:
- 0.9866 = contracted objective point (COP)
- 0.9803 = OP
- 0.9740 = COP
Overbought/Oversold
Assuming that the price is moving in a flat and wave C of medium term uptrend is not yet confirmed, both the readings of the Detrended Oscillator can be used to take long and short positions. At this moment the price is in the overbought area, but it's better to combine this reading with the nearest Fib resistance, which is 0.9966 - this is the level to watch for topping signals.
Read more on how to apply Fibonacci studies to calculate price targets.
