AUD/USD has finished wave 0.9861-1.0856 (coral in the chart). Now corrective wave B is developing from 1.0856. Within this wave we have subwaves A, B, and C (red in the chart). And subwave C is still developing from 1.0817. Within it there are also subwaves A, B, and C (orange red in the chart), and potential corrective subwave 4 is developing from 1.0509.
The targets of the downmove are Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0715-1.0817, 1.0817-1.0655-1.0690.
Supports:
- 1.0476 = .382 retracement
- 1.0448 = super expanded objective point (SXOP)
- 1.0428 = expanded objective point (XOP)
- 1.0358 = .50 ret
However if the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0817-1.0509.
Resistances:
- 1.0627 = .382 ret
- 1.0663 = .50 ret
- 1.0699 = .618 ret
Overbought/Oversold
The larger wave is now moving down, so it's prefereable to go short when the Detrended Oscillator goes above the zero level (5-10 pips above the current prices) or into the overbought area (20-30 pips above the current prices), watch for possibilities to go short at or near the indicated supports.
