AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are subwaves A, and B (royal blue in the chart). Corrective subwave B is developing from 1.0423. Now the targets of the upmove are Fibonacci retracements of 1.0856-1.0423, and expansions off 1.0423-1.0554-1.0509.
Resistances:
- 1.0640 = confluence area of objective point (OP) and .50 retracement
- 1.0691 = .618 ret
- 1.0721 = expanded objective point (XOP)
If the downtrend resumes the immediate supports will be Fibonacci retracements of 0.9861-1.0856, 1.0423-1.0613.
Supports:
- 1.0540 = .382 ret
- 1.0518 = .50 ret
- 1.0496 = .618 ret
- 1.0358 = .50 ret
Overbought/Oversold
The larger wave is now moving up, so it's prefereable to go long when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (20-30 pips below the current prices), watch for possibilities to go long at or near the indicated resistances.
