AUD/USD is moving within impulse wave C of medium term downtrend (colored magenta in the chart). Within this wave there are also A, B and C subwaves (colored orange red in the chart) with subwave C still developing from 1.0640.
The targets of the downmove are Fibonacci retracements of 0.9928-1.0771 and expansions off 1.0771-1.0486-1.0668, 1.0640-1.0426-1.0484.
Supports:
- 1.0352-50 = confluence area of contracted objective point (COP) and .50 retracement
- 1.0270 = objective point (OP)
- 1.0250 = .618 ret
- 1.0207 = expanded objective point (XOP)
- 1.0138 = XOP
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0640 - 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 (30-35 pips above the current prices) or gets into the overbought area (55-65 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
