AUD/USD is moving within wave C (from 1.0600) of medium term downtrend - colored royal blue in the chart. Within wave C there are A and B subwaves (colored orange red in the chart) with subwave B still developing from 1.0320. The targets of the downmove are Fibonacci retracements of 0.9928-1.0600, 1.0111-1.0600, and expansions off 1.1079-0.9928-1.0600.
Supports:
- 1.0298 = .618 retracement
- 1.0264 = .50 ret
- 1.1011 = 100% ret
- 0.9889 = contracted objective point (COP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.1079-0.9928, and expansions off 0.9928-1.0600-1.0320.
Resistances:
- 1.0639 = .618 ret
- 1.0735 = COP
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 (current prices) or gets into the overbought area (15-30 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
