AUD/USD is developing corrective subwave C (colored red in the chart) within wave A of potential corrective A-B-C cycle against the medium term uptrend - colored magenta in the chart. The targets of the downmove are Fibonacci retracements of 1.0204-1.0413, 1.0064-1.0413.
Supports:
- 1.0284-80 = confluence area of .618 and .382 retracements
- 1.0238 = .50 ret
- 1.0197 = .618 ret
If the uptrend resumes the immediate resistances will be Fibonacci expansions off 0.9709-1.0127-1.0064, 1.0064-1.0313-1.0204, 1.0204-1.0413-1.0285, 1.0285-1.0364-1.0311.
Resistances:
- 1.0390 = objective point (OP)
- 1.0414 = contracted objective point (COP)
- 1.0439 = expanded objective point (XOP)
- 1.0453 = OP
- 1.0482 = OP
Overbought/Oversold
Assuming that the medium term may be reversing to the downside, it's possible to look for shorts when the Detrended Oscillator goes above the zero level (current price) sor gets into the overbought area (20-30 pips to go - which roughly corresponds to 1.0390 Fib resistance).
Read more on how to apply Fibonacci studies to calculate price targets.
