The AUD/USD is developing wave C of medium term downtrend - colored royal blue in the chart. On smaller scale this wave includes five subwaves - colored red in the chart. Subwave 5 is still developing. The targets of the downmove are Fibonacci expansions off 1.0197-0.9972-1.0162, 1.0162-0.9819-0.9966.
Supports:
- 0.9623 = objective point (OP)
- 0.9573 = super expanded objective point (SXOP)
- 0.9411 = expanded objective point (XOP)
If the price keeps advancing the immediate resistances will be Fibonacci retracements of 0.9966-0.9709, 1.0162-0.9709.
Resistances:
- 0.9838 = .50 retracement
- 0.9868 = .618 ret
- 0.9882 = .382 ret
- 0.9935 = .50 ret
- 0.9989 = .618 ret
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 (current prices), or when it gets into the overbought area (10-20 pips above the current price level - this rougly corresponds to 0.9938 fib resistance).
Read more on how to apply Fibonacci studies to calculate price targets.
