The AUD/USD is moving within wave C of medium term uptrend - colored royal blue in the chart. Within this wave there are A-B-C subwaves with subwave C still developing - colored orange red in the chart. The nearest resistances are Fibonacci retracements of 1.0255-0.9803, and expansions off 0.9803-1.0076-0.9831, 0.9831-1.0021-0.9865, 0.9865-0.9988-0.9956.
Resistances:
- 1.0148-55 = confluence area of .764 ret and expanded objective point (XOP)
- 1.0172 = XOP
- 1.0273-78 = confluence area of XOP and super expanded objective point (SXOP)
If the price keeps moving down the nearest supports will be Fibonacci retracements of 0.9865-1.0147, 0.9956-1.0147.
Supports:
- 1.0074 = .382 retracement
- 1.0052 = .50 ret
- 1.0039 = .382 ret
- 1.0029 = .618 ret
- 1.0006 = .50 ret
- 0.9873 = .618 ret
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 to consider long positions. The Oscillator is now slightly below the zero level indicating a retracement. Therefore wait until the price hits a Fib support to open long positions - at 1.0074 or lower at 1.0059-39.
Read more on how to apply Fibonacci studies to calculate price targets.
