AUD/USD is developing corrective wave against 1.0439-1.0774 - this is wave B of medium term uptrend that is developing now - colored royal blue in the chart. Within this wave there are A-B and C subwaves - colored magenta in the chart. The targets of the downmove are Fibonacci expansions off 1.0774-1.0562-1.0652.
Supports:
- 1.0521 = contracted objective point (COP)
- 1.0440 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0652-1.0523, 1.0774-1.0523.
Resistances:
- 1.0572 = .382 retracement
- 1.0587 = .50 ret
- 1.0603 = .618 ret
- 1.0619 = .382 ret
- 1.0648 = .50 ret
- 1.0678 = .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 (5-10 pips above the current prices) or gets into the overbought area (25-35 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
