AUD/USD is still moving within corrective wave subwave B (colored magenta in the chart) from 1.0386, that is part of wave C of larger degree (colored royal blue in the chart) from 1.0044. In its turn the latter is part of wave C of still larger degree (colored light green in the chart) from 0.9861. The targets below are Fibonacci retracements of 1.0044-1.0386, and expansions off 1.0386-1.0304-1.0372, 1.0372-1.0310-1.0338, 1.0338-1.0231-1.0278.
Immediate supports:
- 1.0215-12 = confluence area of .50 retracement and contracted objective point (COP)
- 1.0176-75-71 - confluence area of super expanded objective point (SXOP), .618 ret, and objective point (OP)
- 1.0157 = SXOP
- 1.0105 = expanded objective point (XOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0386-1.0231.
Resistances:
- 1.0290 = .382 ret
- 1.0309 = .50 ret
- 1.0327 = .618 ret
Overbought/Oversold
Since the larger wave is now moving down, it's preferable to try short positions until the price breaks above 1.0278 and when the Detrended Oscillator goes above the zero level (20-25 pips above the current prices) or into the overbought area (55-70 pips above the current prices), watch for entries short at or near the indicated resistances.
