The AUD/USD is still developing corrective subwave B (colored red in the chart) within potential impulse wave C of the medium term downtrent (colored magenta in the chart). The targets of the upmove are Fibonacci retracements of 1.0157-0.9963, and expansions off 0.9943-1.0157-0.9963, 0.9963-1.0055-0.9981.
Resistances:
- 1.0083 = .618 ret
- 1.0095 = contracted objective point (COP)
- 1.0130 = expanded objective point (XOP)
- 1.0177 = objective point (OP)
If the price keeps declining the immediate supports will be Fibonacci expansions off 1.0199-0.9943-1.0157, 1.0157-0.9963-1.0082.
Supports:
- 0.9962 = COP
- 0.9901 = OP
- 0.9888 = OP
Overbought/Oversold
Assuming that the medium term trend is down, but the wave up is corrective, it's preferable stand aside and wait until impulse subwave C (A and B colored red) manifests itself. Another variant - to try short-term long positions using the DPO, since now the Detrended Price Oscillator is moving into oversold.
Read more on how to apply Fibonacci studies to calculate price targets.
