AUD/USD is developing potential impulse wave C of medium term downtrend (colored light green in the chart) from 1.0379. Within this wave there are three subwaves (colored yellow in the chart) with subwave C still developing from 1.0209. The targets of the downmove are Fibonacci retracements of 0.9663-1.0379, and expansions off 1.0379-1.0145-1.0209.
Supports:
- 1.0064 = contracted objective point (COP)
- 1.0021 = .50 retracement
- 0.9975 = objective point (OP)
- 0.9937 = .618 ret
- 0.9830 = expanded objective point (XOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0379 - this wave is not developed yet, so no supports are available so far.
Overbought/Oversold
Assuming that the larger wave is now moving down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (60-70 pips above the current prices) or gets into the overbought area (85-100 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
