AUD/USD has developed wave 1.0439-1.0756. According to wave count this was subwave A (colored magenta in the chart) within long term impulse wave C (colored plum in the chart). Subwave B is also over at 1.0588, and now the price is developing potential impulse wave C. The targets of the upmove are Fibonacci retracements of 1.1011-1.0439, and Fibonacci expansions off 1.0439-1.0756-1.0588, 1.0588-1.0677-1.0597.
Resistances:
- 1.0741 = expanded objective point (XOP)
- 1.0784 = contracted objective point (COP)
- 1.0792 = .618 retracement
- 1.0905 = objective point (OP)
If the price reverses down the immediate supports will be Fibonacci retracements of 1.0439-1.0756 and expansions off 1.1011-1.0439-1.0756.
Supports:
- 1.0560 = .618 retracement
- 1.0403 = contracted objective point (COP)
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or gets into the oversold area (25-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
