AUD/USD has developed wave A of medium term uptrend - colored magenta in the chart. And now the pair is developing corrective wave B from 1.0789. Within this wave there are A, B and C subwaves - colored orange red in the chart. The targets of the downmove are Fibonacci retracements of 1.0390-1.0789 and expansions off 1.0789-1.0712-1.0764, 1.0764-1.0714-1.0746.
Supports:
- 1.0665 = expanded objective point (XOP)
- 1.0639-37 = confluence area of XOP and .382 retracement
- 1.0615 = super expanded objective point (SXOP)
- 1.0589 = .50 ret
If the price reverses to the uside the immediate resistances will be Fibonacci retracements of the wave down from 1.0789 - this wave is not developed yet.
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 (current prices) or gets into the oversold area (current prices as well).
Read more on how to apply Fibonacci studies to calculate price targets.
