AUD/USD has developed wave 1.1011-1.0439 - according to wave count this was corrective wave B of long term uptrend. And now this currency pair stands in the beginning of potential impulse wave C - colored plum in the chart. The targets above the current price level are Fibonacci retracements of 1.1011-1.0439, and Fibonacci expansions off 1.0439-1.0726-1.0641.
Resistances:
- 1.0792 = .618 retracement
- 1.0837 = contracted objective point (COP)
- 1.0958 = objective point (OP)
If the price reverses down the immediate supports will be Fibonacci retracements of 1.0439-1.0756.
Supports:
- 1.0635 = .382 ret
- 1.0598 = .50 ret
- 1.0560 = .618 ret
Overbought/Oversold
Assuming that the long term and medium term trends are up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (50-55 pips below the current prices) or gets into the oversold area (70-80 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
