AUD/USD broke above 1.0580 and that confirmed wave C of daily degree - colored light green in the chart. Within this wave C there are A-B-C subwaves of smaller degree - they are colored royal blue in the chart and subwave C is still developing, this subwave has A-B-C subwaves of still smaller degree - colored yellow. The immediate resistances are Fibonacci expansions off 0.9709-1.0580-1.0389, 1.0389-1.0578-1.0442, 1.0442-1.0527-1.0490.
Resistances:
- 1.0628-31 = confluence area of objective point (OP) and expanded objective point (XOP)
If the price reverses down the immediate supports will be Fibonacci retracements of the wave up from 1.0442 - this wave is not developed yet.
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 (15-25 pips below the current prices) or gets into the oversold area (30-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
