AUD/USD is developing wave A of medium term downtrend (colored light green in the chart). Within this wave there are four subwaves (colored royal blue in the chart) with corrective subwave 4 still developing from 0.9663. Within the latter wave 4 there are also three subwaves (colored red in the chart) with subwave C developing from 0.9666. The targets of the upmove are Fibonacci retracements of 1.0343-0.9663, and expansions off 0.9663-0.9785-0.9666, 0.9666-0.9975-0.9863.
Resistances:
- 0.9985 = super expanded objective point (SXOP)
- 1.0003 = .50 retracement
- 1.0054 = contracted objective point (COP)
- 1.0083 = .618 ret
If the pair reverses to the downside the immediate supports will be Fibonacci retracements of 0.9663-0.9975.
Supports:
- 0.9856 = .382 ret
- 0.9819 = .50 ret
- 0.9782 = .618 ret
Overbought/Oversold
Assuming that the larger wave is now moving up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (60-70 pips below the current prices) or gets into the oversold area (80-90 pips below the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
