AUD/USD has probably finished wave C of medium term downtrend - 1.0888-1.0504, and now we have a corrective wave that is developing. The targets of the upmove are Fibonacci retracements of 1.0888-1.0504, 1.1011-1.0504, and expansions off 1.0504-1.0680-1.0594.
Resistances:
- 1.0696-98-1.0703 = confluence area of .50 and .382 retracements and contracted objective point (COP)
- 1.0741 = .618 ret
- 1.0758 = .50 ret
- 1.0770 = objective point (OP)
- 1.0817 = .618 ret
If the downtrend resumes the immediate supports will be Fibonacci retracements of 0.9709-1.1011, and expansions off 1.1011-1.0536-1.0888, 1.0888-1.0504-1.0680.
Supports:
- 1.0514 = .382 retracement
- 1.0443 = COP
- 1.0413 = OP
- 1.0360 = .50 ret
- 1.0296 = OP
Overbought/Oversold
Assuming that the medium term trend is down but a corrective wave up is developing it's preferable to stand aside or 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 (30-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
