AUD/USD is developing correction against 1.0439-1.0774 - this is potential wave A of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 1.0439-1.0774 and expansions off 1.0774-1.0671-1.0737.
Supports:
- 1.0646 = .382 retracement
- 1.0634 = objective point (OP)
- 1.0606 = .50 ret
- 1.0570-67 = confluence area of expanded objective point (XOP) and .618 ret
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the downwave from 1.0774 - this wave is not developed yet.
Overbought/Oversold
Assuming that the price is developing a corrective wave against the medium term uptrend it's preferable to stand aside or try short positions when the Detrended Oscillator goes above the zero level (current prices) or gets into the overbought area (25-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
