The AUD/USD is developing corrective subwave B (colored magenta in the chart) within impulse wave C of medium term uptrend. The targets below the current price are Fibonacci retracements of 1.0054-1.0199 and 0.9865-1.0199.
Supports:
- 1.0109 = .618 retracement, already hit (!)
- 1.0071 = .382 ret
- 1.0032 = .50 ret
- 0.9993 = .618 ret
If the uptrend continues and the price breaks above 1.0199, then the immediate resistances will be Fibonacci expansions off 0.9803-1.0076-0.9831, 0.9831-1.0021-0.9865, 0.9865-1.0199-1.0103.
Resistances:
- 1.0273 = expanded objective point (XOP)
- 1.0309 = contracted objective point (COP)
- 1.0382 = super expanded objective point (SXOP)
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 above the zero, so a retracement is needed to open a long position. The zero level is 15 pips below the curerent price (1.0140-35), and the oversold area is 30-35 pips below the current price (1.0120-1.0115).
Read more on how to apply Fibonacci studies to calculate price targets.
