AUD/USD is moving within impulse wave C of medium term downtrend (colored magenta in the chart) from 1.0668. Within this wave there are also A, B and РЎ subwaves (colored red in the chart).
The targets of the downmove are Fibonacci expansions off 1.0768-1.0486-1.0665, 1.0665-1.0259-1.0379, 1.0379-1.0181-1.0299.
Supports:
- 1.0177 = contracted objective point (COP)
- 1.0128 = COP
- 1.0101 = objective point (OP)
- 0.9979-73 = confluence area of expanded objective point (XOP) and OP
- 0.9927 = super expanded objective point (SXOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0665-1.0181.
Resistances:
- 1.0366 = .382 retracement
- 1.0423 = .50 ret
- 1.0480 = .618 ret
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 (25-30 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.
