AUD/USD is developing medium term uptrend, wave C (colored red in the chart) now has A-B and C subwaves (colored orange red) and the latter is still developing. Now the targets of the upmove are Fibonacci expansions off 1.0536-1.0802-1.0661, 1.0661-1.0811-1.0735, 1.0735-1.0818-1.0779.
Resistances:
- 1.0862 = objective point (OP)
- 1.0885 = OP
- 1.0913 = expanded objective point (XOP)
- 1.0927 = OP
- 1.0978 = XOP
If the price reverses down the immediate supports will be Fibonacci retracements of the waves up from 1.0661 and from 1.0536 - these waves are not developed yet.
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (5-10 pips below the current prices) or gets into the oversold area (40-55 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
