AUD/USD has finished wave 1.0390-1.0797 (wave A of long term uptrend - colored light green in the chart) and now is developing potential corrective wave B of the same degree from 1.0797. Within this wave there are 5 subwaves (colored orange red in the chart).
Now the targets of the downmove are Fibonacci retracements of 1.0390-1.0797 and expansions off 1.0797-1.0715-1.0784, 1.0784-1.0629-1.0674.
Supports:
- 1.0594 = .50 retracement
- 1.0578-69 = confluence area of contracted objective point (COP) and super expanded objective point (SXOP)
- 1.0545 = .618 ret
- 1.0519 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0797 - this wave is not developed yet, so no resistances are available so far.
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to 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.
