The AUD/USD is developing potential wave C of medium term uptrend - colored royal blue in the chart. The targets of the upmove are Fibonacci expansions off 0.9963-1.0197-0.9972.
Resistances:
- 1.0206 = objective point (OP)
- 1.0351 = expanded objective point (XOP)
If the downtrend resumes the immediate supports will be Fibonacci retracements of 0.9972-1.0162, and if the price breaks below 0.9972 the supports will be Fibonacci expansions off 1.0197-0.9972-1.0162.
Supports:
- 1.0067 = .50 retracement
- 1.0045 = .618 ret
- 1.0023 = contracted objective point (COP)
- 0.9937 = OP
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to look for longs when the Detrended Oscillator gets below the zero - current prices, or when it gets into the oversold area - 20-30 pips below the current price, and that roughly corresponds to 1.0067 support.
Read more on how to apply Fibonacci studies to calculate price targets.
