AUD/USD is now moving in subwave C (colored magenta in the chart) that is part of wave C of larger degree - colored royal blue in the chart. The former subwave C also consists of four waves of still smaller degree - colored red in the chart. The immediate supports are Fibonacci retracements of 1.0778-1.0947, 1.0676-1.0947, and expansions off 1.0947-1.0863-1.0941.
Supports:
- 1.0863-57 = confluence area of .50 retracement and objective point (OP)
- 1.0843 = confluence area of .618 and .382 retracements
- 1.0812-05 = confluence area of .50 ret and expanded objective point (XOP)
- 1.0780 = .618 ret
- 1.0721 = super expanded objective point (SXOP)
If the uptrend resumes the immediate resistances will be Fibonacci expansions off 0.9709-1.0580-1.0389, 1.0389-1.0578-1.0442, 1.0442-1.0775-1.0676, 1.0676-1.0851-1.0778, 1.0778-1.0947-1.0863.
Resistances:
- 1.0967 = contracted objective point (COP)
- 1.1009 = OP
- 1.1032 = OP
- 1.1061 = expanded objective point (XOP)
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to try longs when the Detrended Oscillator goes below the zero level (current prices) or gets into the oversold area (15-25 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
