The AUD/USD is developing corrective wave B of medium term uptrend - colored magenta in the chart. The targets of the corrective downwave are Fibonacci retracements of 0.9803-1.0076, 0.9855-1.0076.
Supports:
- 0.9940-39 = confluence area of .618 and .50 retracements
- 0.9907 = .618 retracement
If the uptrend continues and the price breaks above 1.0076 the nearest resistances will be Fibonacci retracements of 1.0255-0.9803.
Resistances:
- 1.0082 = .618 retracement
- 1.0148 = .764 retracement
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 below the zero and has already crossed it once. The level to watch for long positions is 0.9940-39.
Read more on how to apply Fibonacci studies to calculate price targets.
