The AUD/USD is developing subwave C (colored orange red in the chart) within potential wave C of medium term downtrend (colored magenta in the chart). To confirm wave C break below 0.9943 is needed - it's the top of wave A. Now the targets below the current price are Fibonacci expansions off 1.0199-0.9943-1.0157, 1.0517-1.0073-1.0098.
Supports:
- 1.0014 = objective point (OP), already hit (!)
- 0.9999 = contracted objective point (COP)
- 0.9962 = expanded objective point (XOP)
- 0.9901 = OP
- 0.9878 = super expanded objective point (SXOP)
If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 1.0157 - this wave is not developed yet.
Overbought/Oversold
Assuming that the medium term trend is down, it's preferable to use overbought readings (15-20 pips away from the current price) of the Detrended Price Oscillator, or the overbought area (40-50 pips above the current price) to consider short positions.
Read more on how to apply Fibonacci studies to calculate price targets.
