The AUD/USD is developing corrective subwave B (colored magenta in the chart) within wave C of medium term downtrend - colored royal blue in the chart. Within subwave B there are waves of still smaller degree - colored orange red and yellow. The targets of the upmove are Fibonacci retracements of 1.0255-0.9709, and expansions off 0.9709-0.9876-0.9784, 0.9784-0.9952-0.9896.
Resistances:
- 1.0046-54 = confluence area of .618 retracement and expanded objective point (XOP)
- 1.0064 = objective point (OP)
- 1.0168 = XOP
- 1.0221 = super expanded objective point (SXOP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 0.9784 - this wave is not developed yet.
Overbought/Oversold
Assuming that the medium term downtrend is in corrective mode, it's preferable to stand aside until either the downtrend resumes or the corrective upmove proves to be a wave up of larger degree.
Read more on how to apply Fibonacci studies to calculate price targets.
