AUD/USD is developing wave A of medium term downtrend from 1.0386 (colored light green in the chart). Inside this wave there are A and B subwaves (colored magenta in the chart), with subwave B still developing from 1.0145. Subwave B of still smaller degree (colored red in the chart) is developing from 1.0351.
The targets below are Fibonacci retracements of 1.0145-1.0351, and expansions off 1.0386-1.0145-1.0351.
Supports:
- 1.0272 = .382 retracement
- 1.0248 = .50 ret
- 1.0224 = .618 ret
- 1.0202 = contracted objective point (COP)
- 1.0189 = .786 ret
- 1.0110 = objective point (OP)
If the reverses to the upside and starts advancing the immediate resistances will be Fibonacci expansions off 1.0044-1.0386-1.0145.
Resistances:
- 1.0356 = COP
- 1.0487 = OP
Overbought/Oversold
The larger wave is going down, therefore it's preferable to try short positions before 1.0351 is broken to the upside and when the Detrended Oscillator goes above the zero level (10-15 pips above the current prices) or into the overbought area (35-50 pips above the current), watch for entries short at or near the indicated resistances.
