AUD/USD is developing subwave C (colored royal blue in the chart) within impulse wave C of medium term uptrend - colored light green in the chart. The former subwave also has waves of smaller degree - colored orange red in the chart, subwave C is still developing. The immediate resistances are Fibonacci expansions off 0.9709-1.0580-1.0389, 1.0389-1.0578-1.0442, 1.0442-1.0691-1.0648, 1.0648-1.0719-1.0676.
Resistances:
- 1.0791-1.0802 = confluence area of expanded objective point (XOP) and contracted objective point (COP)
- 1.0862 = super expanded objective point (SXOP)
- 1.0897 = objective point (OP)
- 1.0927-37 = confluence area of COP and SXOP
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 (25-30 pips below the current prices) or gets into the oversold area (35-45 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
