AUD/USD has finished the whole downmove from 1.1011 to 1.0390 and now is developing either a correction to this wave or brand new wave A of long tern uptrend. Now the targets of the upmove are Fibonacci retracements of 1.1011-1.0390, and expansions off 1.0435-1.0548-1.0519.
Resistances:
- 1.0774 = .618 retracement
- 1.0815 = super expanded objective point (SXOP)
If the price reverses down the immediate supports will be Fibonacci retracements of the wave up from 1.0390 - this wave is not developed yet therefore no supports are available so far.
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 (25-30 pips below the current prices) or gets into the oversold area (40-50 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
