AUD/USD is moving within impulse wave A of medium term downtrend (colored royal blue in the chart) from 1.0748. Within this wave there are also four subwaves (colored magenta in the chart) with subwave 4 potentially coming to an end.
Tthe targets of the upmove are Fibonacci retracements of 1.0665-1.0181 and 1.0748-1.0181.
Resistances:
- 1.0423 = .50 retracement
- 1.0465 = .50 ret
- 1.0480 = .618 ret
- 1.0531 = .618 ret
If the price reverses to the downside the immediate supports will be Fibonacci expansions off 1.0768-1.0486-1.0665, 1.0665-1.0181-1.0401.
Supports:
- 1.0181 = previous low
- 1.0102 = contracted objective point (COP)
- 0.9927-17 = confluence area of super expanded objective point (SXOP) and objective point (OP)
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 (40-50 pips above the current prices) or gets into the overbought area (70-85 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
