AUD/USD is developing subwave C (colored royal blue in the chart) within wave C of long term downtrend - colored light green in the chart. Now we have a corrective wave within the former subwave - and that is B (colored orange red in the chart).
The targets of the upmove are Fibonacci retracements of 1.0710-1.0478.
Resistances:
- 1.0576 = .382 retracement
- 1.0594 = .50 ret
- 1.0621 = .618 ret
If the price breaks below 1.0478 and the downtrend resumes the immediate supports will be Fibonacci retracements of 1.0504-1.0710, and expansions off 1.1011-1.0536-1.0888, 1.0888-1.0504-1.0710.
Supports:
- 1.0473 = contracted objective point (COP)
- 1.0413 = objective point (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 (current prices) or gets into the overbought area (current prices as well).
Read more on how to apply Fibonacci studies to calculate price targets.
