AUD/USD is developing corrective wave against 1.0439-1.0774 - this is wave B 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, 1.0737-1.0588-1.0662.
Supports:
- 1.0570-67 = confluence area of expanded objective point (XOP), contracted objective point (COP) and .618 ret
- 1.0513 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.07741.0562.
Resistances:
- 1.0643 = .382 retracement
- 1.0668 = .50 ret
- 1.0693 = .618 ret
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 (30-35 pips above the current prices) or gets into the overbought area (55-75 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
