AUD/USD broke above 1.0268 and now is moving within a potential wave C of a medium term uptrend from 0.9861 (colored light green in the chart). Confirmation of this wave is a breakout above 1.0379. As for subwaves, we have A, B and C subwaves (colored royal blue in the chart), and subwave C is developing from 1.0044. Within this wave we have still smaller A, B and C subwaves (colored red in the chart), with subwave C still developing from 1.0197. The immediate resistances are Fibonacci expansions off 0.9663-1.0379-0.9861, 0.9861-1.0218-1.0044, 1.0044-1.0268-1.0197.
Resistances:
- 1.0303 = contracted objective point (COP)
- 1.0335 = COP
- 1.0401 = objective point (OP)
- 1.0421 = OP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0044 - this wave is not developed yet, so no supports are available so far.
Overbought/Oversold
Assuming that the larger wave is now moving up, it's preferable to try long positions until the price breaks below 1.0197 and when the Detrended Oscillator goes below the zero level (20-25 pips below the current prices) or into the oversold area (50-60 pips below the current prices), watch for entries long at or near the indicated supports.
