AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave we have A, B, and impulse C subwave (magenta in the chart) that is developing from 1.0669. Within the latter subwave there are also waves of a still smaller degree (red in the chart), and corrective subwave B is developing from 1.0473.
The targets below are Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0509-1.0669, 1.0669-1.0473-1.0560, 1.0560-1.0485-1.0555.
Supports:
- 1.0509 = contracted objective point (COP)
- 1.0480 = objective point (OP)
- 1.0476 = .382 retracement
- 1.0455 = contracted objective point (COP)
- 1.0439-34 = confluence area of COP and expanded objective point (XOP)
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's prefereable to go short when the Detrended Oscillator goes above the zero level (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 resistances.
