AUD/USD broke below 1.0536 and confirmed wave C of medium term downtrend - colored magenta in the chart. On smaller scale this wave consists of A and B subwaves (colored red in the chart), and wave C that may be over now. The targets below the current price are Fibonacci retracements of 0.9709-1.1011, and expansions off 1.1011-1.0536-1.0888, 1.0888-1.0566-1.0716, 1.0716-1.0512-1.0642.
Supports:
- 1.0516 = contracted objective point (COP)
- 1.0438 = objective point (OP)
- 1.0413 = OP
- 1.0394 = OP
- 1.0360 = .50 ret
- 1.0312 = expanded objective point (XOP)
- 1.0206 = .618 ret
If the price reverses up the immediate resistances will be Fibonacci retracements of 1.0888-1.0512.
Resistances:
- 1.0656 = .382 retracement
- 1.0700 = .50 ret
- 1.0744 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or gets into the overbought area (35-50 pips above the current prices), or hits a Fib resistance at 1.0656 (.382 retracement).
Read more on how to apply Fibonacci studies to calculate price targets.
