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 1.0390-1.0750-1.0673.
Resistances:
- 1.0774 = .618 retracement
- 1.0895 = contracted objective point (COP)
If the price reverses down the immediate supports will be Fibonacci retracements of 1.0390-1.0750.
Supports:
- 1.0612 = .382 ret
- 1.0570 = .50 ret
- 1.0528 = .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 (25-35 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
