AUD/USD is now moving within wave A of medium term downtrend from 1.0386 (colored light green in the chart). On smaller scale this wave consists of subwaves A and B (colored magenta in the chart), with subwave B still developing from 1.0145.
Now the targets of the upmove are calculated using Fibonacci retracements of 1.0386-1.0145, and expansions off 1.0145-1.0244-1.0193 (subwaves A and B - colored yellow in the chart).
Resistances:
- 1.0334 = .786 retracement
- 1.0353 = expanded objective point (XOP)
- 1.0452 = super expanded objective point (SXOP)
If the price resumes the downtrend the immediate supports will be Fibonacci retracements of the wave up from 1.0145 - this wave is not developed yet, so no supports are available.
Overbought/Oversold
The larger wave is now moving down, therefore it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (current prices as well), watch for entries short at or near the indicated resistances.
