The AUD/USD is developing wave C of medium term downtrend - colored magenta in the chart. Wave C in its turn consists of subwaves A-B-C with subwave C still developing - colored orange red in the chart. The targets of the downmove are Fibonacci retracements of 0.9963-1.0197, and expansions off 1.0197-1.0071-1.0188, 1.0188-1.0094-1.0137, 1.0137-1.0057-1.0121.
Supports:
- 1.0052 = .618 retracement
- 1.0043-41 = confluence area of two objective points (OP)
- 0.9992-85-84 = confluence area of three expanded objective points (XOP)
If the price reverses up the immediate resistances will be Fibonacci retracements of 1.0188-1.0057.
Resistances:
- 1.0107 = .382 retracement
- 1.0122 = .50 ret
- 1.0138 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to look for shorts when the Detrended Oscillator gets into the overbought (10-20 pips above the current price - this roughly corresponds to the immediate Fib resistance at 1.0107) or stays above the zero level (current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
