AUD/USD has developed wave 1.0756-1.0588. According to wave count this was subwave B (colored magenta in the chart) within long term impulse wave C (colored plum in the chart). And now the price is developing 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, 1.0588-1.0677-1.0593, 1.0593-1.0774-1.0691.
Resistances:
- 1.0784 = contracted objective point (COP)
- 1.0792 = .618 retracement
- 1.0798 = expanded objective point (XOP)
- 1.0803 = COP
- 1.0872 = objective point (OP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0593-1.0774.
Supports:
- 1.0683 = .50 ret
- 1.0662 = .618 ret
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 (15-20 pips below the current prices) or gets into the oversold area (45-60 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
