AUD/USD is developing impulse subwave C (colored magenta in the chart) within wave C of larger degree - colored royal blue in the chart. The former wave now has 5 subwaves - colored yellow in the chart. And subwave 5 is still developing. The targets of the upmove are Fibonacci expansions off 0.9709-1.0313-1.0204, 1.0204-1.0413-1.0285, 1.0285-1.0364-1.0311, 1.0311-1.0447-1.0415.
Resistances:
- 1.0494-99 = confluence area of objective point (OP) and contracted objective point (COP)
- 1.0518 = super expanded objective point (SXOP)
- 1.0551 = OP
- 1.0577 = COP
If the price reverses down the immediate supports will be Fibonacci retracements of 1.0285-1.0478.
Supports:
- 1.0404 = .382 retracement
- 1.0381 = .50 ret
- 1.0359 = .618 ret
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 (5-10 pips below the current prices) or gets into the oversold area (20-30 pips to go - which roughly corresponds to 1.0390 Fib resistance), or hits Fib support at 1.0404.
Read more on how to apply Fibonacci studies to calculate price targets.
