The AUD/USD is basically trading in the flat limited by 0.9943-1.0147. But according to wave count we have potential wave C of medium term uptrend - colored magenta in the chart. To confirm wave C break above 1.0147 is needed.
The targets above the current price level are Fibonacci expansions off 0.9943-1.0157-0.9963, 0.9963-1.0082-1.0001, 1.0001-1.0123-1.0068.
Resistances:
- 1.0143 = contracted objective point (COP)
- 1.0177 = objective point (OP)
- 1.0190-94 = confluence area of OP and expanded objective point (XOP)
If the price reverses down the nearest supports will be Fibonacci retracements of the waves up from 1.0001 and 0.9963 - these waves are not developed yet.
Overbought/Oversold
Assuming that this pair is trading in a wide flat, it's preferable to stand aside until a trend reveals itself, or long positions are also possible, while wave C is still developing. Oversold condition of the oscillator (30-40 pips below the current price) is the first prerequisite for long positions.
Read more on how to apply Fibonacci studies to calculate price targets.
