AUD/USD is moving within wave C of long term uptrend - from 1.0561 (colored light green in the chart). At the moment this wave consists of five subwaves - colored red in the chart.
The targets of the upmove are Fibonacci expansions off 1.0390-1.0797-1.0561, 1.0561-1.0772-1.0694, 1.0694-1.0873-1.0795, 1.0795-1.1079-1.1002.
Resistances:
- 1.1085 = expanded objective point (XOP)
- 1.1178 = contracted objective point (COP)
- 1.1220 = XOP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0561-1.1079.
Supports:
- 1.0881 = .382 retracement
- 1.0820 = .50 ret
- 1.0759 = .618 ret
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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 (5-15 pips below the current prices) or gets into the oversold area (20-30 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
