The AUD/USD is moving within corrective subwave B (colored magenta in the chart) that is part of potential wave C of larger degree - colored royal blue in the chart.
The targets of the downmove are Fibonacci retracements of 1.0001-1.0197, 0.9963-1.0197, and expansions off 1.0197-1.0145-1.0192, 1.0192-1.0120-1.0147.
Supports:
- 1.0080-76-75 = confluence area of .50 and .618 retracements and objective point (OP), already hit (!)
- 1.0056-52 = confluence area of super expanded objective point (SXOP) and .618 ret
- 1.0031 = expanded objective point (XOP)
If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 1.0197 - this wave is not developed yet.
Overbought/Oversold
Assuming that medium term tern trend is down it's preferable to use overbought readings of the Detrended Oscillator (25-40 pips below the current price) or its cross above the zero level (10-15 pips above) to consider short positions.
Read more on how to apply Fibonacci studies to calculate price targets.
