The AUD/USD pair is developing the potential corrective wave B of the medium term uptrend (coral in the chart) from 1.0856. Within this wave we have subwaves A, B, and impulse subwave C (magenta in the chart) developing from 1.0669. Within the latter subwave there are smaller waves (red in the chart) and a corrective subwave B developing from 1.0473.
The targets below are Fibonacci retracements of 0.9861-1.0856 and expansions 1.0856-1.0509-1.0669.
Supports:
- 1.0476 = .382 retracement
- 1.0455 = contracted objective point (COP)
- 1.0358 = .50 ret
- 1.0322 = objective point (OP)
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 1.0856-1.0473, 1.0669-1.0473.
Resistances:
- 1.0571 = .50 ret
- 1.0594 = .618 ret
- 1.0619 = .382 ret
- 1.0664 = .50 ret
- 1.0710 = .618 ret
Overbought/Oversold
The larger wave is now moving down, so it is recommended ti open short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (15-25 pips above the current prices). Consider the possibilities of short positions at or near the indicated resistances.
