The AUD/USD is developing corrective subwave 4 (colored yellow in the chart) that is part of impulse wave C (colored red in the chart), and the latter is also part of wave C of still larger degree (colored magenta in the chart). The targets of the upmove are Fibonacci retracements of 1.0188-0.9993, 1.0135-0.9993, 1.0121-0.9993.
Resistances:
- 1.0047 = .382 retracement
- 1.0057-64-67 = confluence area of .50, and .382 retracements
- 1.0072 = .618 ret
- 1.0081-91 = confluence area of .618 and .50 retracements
- 1.0114 = .618 ret
If the downtrend resumes the immediate supports will be Fibonacci expansions off 1.0197-1.0071-1.0188, 1.0188-1.0057-1.0135, 1.0135-1.0072-1.0121.
Supports:
- 0.9984 = expanded objective point (XOP)
- 0.9956 = super expanded objective point (SXOP)
- 0.9923 = XOP
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to look for shorts when the Detrended Oscillator gets above the zero - 5-15 pips above the curreht price, or when it gets into the overbought area - 20-30 pips above the current price, which roughly corresponds to 1.0042-47 resistance area.
Read more on how to apply Fibonacci studies to calculate price targets.
