AUD/USD is moving within impulse 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 expansions off 0.9928-1.0600-1.0315, 1.0315-1.0533-1.0418, 1.0418-1.0685-1.0621, 1.0621-1.0720-1.0651.
Resistances:
- 1.0730 = contracted objective point (COP)
- 1.0750 = objective point (OP)
- 1.0771 = expanded objective point (XOP)
- 1.0786 = COP
- 1.0811 = XOP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0418-1.0720.
Supports:
- 1.0605 = .382 retracement
- 1.0569 = .50 ret
- 1.0533 = .618 ret
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 (15-20 pips below the current prices) or gets into the oversold area (30-35 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
