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.
Resistances:
- 1.0696-98 = confluence area of .50 and .382 retracements
- 1.0741 = .618 ret
- 1.0758 = .50 ret
- 1.0817 = .618 ret
If the downtrend resumes the immediate supports will be Fibonacci retracements of 0.9709-1.1011, 1.0504-1.0710, and expansions off 1.1011-1.0536-1.0888, 1.0888-1.0504-1.0710.
Supports:
- 1.0583 = .618 ret
- 1.0514 = .382 retracement
- 1.0473 = COP
- 1.0413 = OP
- 1.0360 = .50 ret
- 1.0326 = OP
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 (30-35 pips above the current prices) or gets into the overbought area (55-70 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
