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 waves of still smaller degree - colored red in the chart. There are 5 of them and now we may be having wave A that may become part of corrective A-B-C cycle. The immediate supports are Fibonacci retracements of 1.0963-1.1009, and 1.0676-1.1009.
Supports:
- 1.0919 = .618 retracement
- 1.0882 = .382 ret
- 1.0842 = .50 ret
- 1.0803 = .618 ret
If the uptrend resumes the resistances will be Fibonacci expansions off 0.9709-1.0580-1.0389, 1.0442-1.0775-1.0676, 1.0676-1.0947-1.0863.
Resistances:
- 1.1009 = objective point (OP)
- 1.1030 = contracted objective point (COP)
- 1.1134 = OP
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 (current prices), or when the price hits a Fib support (e.g. at 1.0919 or 1.0882).
Read more on how to apply Fibonacci studies to calculate price targets.
