The AUD/USD is still trading in the flat limited by 0.9831-1.0021. But according to wave count this pair is developing potential wave C of daily degree - colored royal blue in the chart. To confirm wave C break below 0.9831 is needed (top of wave A). The targets below the current price level are Fibonacci expansions off 1.0255-0.9803-1.0076, 1.0076-0.9831-1.0021, 1.0021-0.9874-0.9986.
Supports:
- 0.9870 = contracted objective point (COP)
- 0.9839 = objective point (OP)
- 0.9797 = COP
- 0.9776 = OP
- 0.9748 = expanded objective point (XOP)
If the price keeps going up the nearest resistances will be Fibonacci retracements of 1.0021-0.9865, 1.0255-0.9803, and expansions off 0.9831-1.0021-0.9865.
Resistances:
- 0.9961 = .618 retracement
- 0.9982 = COP
- 1.0055 = OP
- 1.0082 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to use overbought readings of the Detrended Oscillator or its cross above the zero level to consider short positions. The Oscillator is now in the overbought and .50 retracement has been hit (0.9943), therefore short positions are recommended if the topping signal is confirmed.
Read more on how to apply Fibonacci studies to calculate price targets.
