Below 1.0573 AUD/USD is developing corrective subwave B (colored magenta in the chart), that is part of impulse wave C of medium term uptrend (colored royal blue in the chart) from 1.0231. Wave C will continue if the price breaks above 1.0573, otherwise its end is at 1.0573.
As far as the corrective subwave is concerned, its targets below are Fibonacci retracements of 1.0231-1.0573.
Supports:
- 1.0442 = .382 retracement
- 1.0402 = .50 ret
- 1.0362 = .618 ret
But if the price keeps moving up and breaks above 1.0573, the targets above will be Fibonacci expansions off 1.0145-1.0377-1.0231, 1.0231-1.0573-1.0427, 1.0427-1.0494-1.0446.
Resistances:
- 1.0554 = expanded objective point (XOP)
- 1.0606 = XOP
- 1.0621 = super expanded objective point (SXOP)
- 1.0638 = contracted objective point (COP)
Overbought/Oversold
The larger wave is still going up, that's why it's prefereable to open longs when the Detrended Oscillator goes below the zero level (10-15 pips below the current prices) or into the oversold area (30-40 pips below the current prices).
