The AUD/USD pair has finished wave 0.9861-1.0856 (coral in the chart) that consists of 5 smaller waves (light green in the chart). Presently the corrective wave B is developing from 1.0856. Within this wave we have subwaves A, B, and C (red in the chart). The subwave C is still developing from 1.0817 comprising the subwaves A, B, and C (orange red in the chart); the wave C is still developing from 1.0690.
The downside targets are Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0715-1.0817, 1.0817-1.0655-1.0690.
Supports:
- 1.0590-89 = confluence area of contracted objective point (COP) and expanded objective point (XOP)
- 1.0528 = objective point (OP)
- 1.0476 = .382 retracement
However, if the price reverses to the upside, the immediate resistances will be Fibonacci retracements of the wave down from 1.0856. As this wave is not developed yet ,so no resistance levels are not available.
Overbought/Oversold
The larger wave is now moving down, so it i recommended to open the short positions when the Detrended Oscillator goes above the zero level (50-60 pips above the current prices) or into the overbought area (80-90 pips above the current prices). Mind the possibilities of short positions at or near the indicated supports.
