AUD/USD is moving within potential wave C (from 1.0315) of medium term uptrend - colored royal blue in the chart. Within wave C there are A, B and C subwaves (colored magenta in the chart) with subwave C still developing from 1.0418. The targets of the upmove are Fibonacci retracements of 1.1079-0.9928, and expansions off 0.9928-1.0600-1.0315, 1.0315-1.0533-1.0418, 1.0418-1.0517-1.0463, 1.0463-1.0590-1.0548.
Resistances:
- 1.0623-26 = confluence area of expanded objective point (XOP) and contracted objective point (COP), already hit (!)
- 1.0636-39 = confluence area of objective point (OP) and .618 retracement
- 1.0675 = OP
- 1.0722 = super expanded objective point (SXOP) and COP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0418 - this wave is not developed yet, so no supports are available so far.
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 (20-25 pips below the current prices) or gets into the oversold area (30-40 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
