The AUD/USD is moving within corrective wave B of medium term uptrend - colored magenta in the chart. The targets of the corrective downwave are Fibonacci expansions off 1.0076-0.9925-0.9972, below 0.9803 the targets will be Fibonacci retracements of 0.9540-1.0255. If this dowmwave breaks below 0.9803 it will become wave A.
Supports:
- 0.9821 = objective point (OP)
- 0.9728 = expanded objective point (XOP)
- 0.9709 = .764 retracement
If the price reverses up the nearest resistances will be Fibonacci retracements of 1.0076-0.9831, 0.9972-0.9831.
Resistances:
- 0.9901 = .50 retracement
- 0.9918 = .618 ret
- 0.9925 = .382 ret
- 0.9953 = .50 ret
- 0.9982 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down (subwave C - colored orange red - within wave B of a larger degree) it's preferable to use overbought readings of the Detrended Oscillator or its cross above the zero level. The Oscillator is now above the zero and possibly moving into the overbought. The levels to watch for short positions are 0.9985 and 0.9901, and possibly 0.9918.
Read more on how to apply Fibonacci studies to calculate price targets.
