AUD/USD is now moving within corrective wave 4 of medium term uptrend - colored royal blue in the chart. Now the immediate supports are Fibonacci retracements of 1.0676-1.1011 (subwave C within wave 3), 1.0442-1.1011 (wave 3), and expansions off 1.1011-1.0846-1.0932.
Supports:
- 1.0804-1.0794 = confluence area of .618 and .382 retracements
- 1.0767 = objective point (OP)
- 1.0726 = .50 ret
- 1.0665-59 = confluence area of expanded objective point (XOP) and .618 ret
If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 1.1011 - this wave is not developed yet.
Overbought/Oversold
Assuming that the medium term trend is up but a corrective wave is developing it's preferable to stand aside or try shorts when the Detrended Oscillator goes above the zero level (20-25 pips above the current prices) or gets into the overbought area (50-65 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
