The AUD/USD is developing corrective subwave B (colored red in the chart) within wave 5 of medium term uptrend - colored magenta in the chart. The targets of the downmove are Fibonacci retracements of 0.9709-1.0368, 1.0204-1.0368.
Supports:
- 1.0305 = .382 retracement
- 1.0286 = .50 ret
- 1.0267 = .618 ret
- 1.0116 = .382 ret
- etc.
If the uptrend resumes and the price breaks above 1.0368 the immediate resistances will be Fibonacci expansions off 0.9709-1.0127-1.0064, 1.0064-1.0313-1.0204, and 1.0204-1.0368-1.0310.
Resistances:
- 1.0411 = contracted objective point (COP)
- 1.0453 = objective point (OP)
- 1.0474-82 = confluence area of two objective points (OP)
Overbought/Oversold
Assuming that the medium term trend is up, it's preferable to look for longs when the Detrended Oscillator goes below the zero level (10-15 pips below the current prices) or gets into the oversold area (25-35 pips to go) - this rougly corresponds to 1.0305 Fib support.
Read more on how to apply Fibonacci studies to calculate price targets.
