The AUD/USD has confirmed wave C (colored red in the chart) of medium term uptrend by breaking above 1.0019. This wave consists of subwaves A-B-C (colored orange red in the chart) with subwave C still developing. 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, and 0.9897-1.0004-0.9960.
Resistances:
1.0067-71-78-82 = confluence area of two objective points (OP), expanded objective point (XOP) and .618 retracement
- 1.0133 = XOP
- 1.0148 = .764 retracement
If the price reverses down the nearest supports will be Fibonacci retracements of the wave up starting from 0.9897 - this wave is not developed yet.
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero level. The Oscillator is now moving from the overbought, the zero level is 15 pips away, and the oversld is 35-45 pips away from the current price.
Read more on how to apply Fibonacci studies to calculate price targets.
