The AUD/USD pair is developing the potential corrective wave B of the medium term uptrend (coral in the chart) from 1.0856 comprising the subwaves A, and B (royal blue in the chart). The corrective subwave B is developing from 1.0423. Within the latter we have subwaves A, and B (red in the chart), subwave B is developing from 1.0636.
Presently the downside targets are Fibonacci retracements of 1.0423-1.0636, 0.9861-1.0856, and expansions of 1.0856-1.0423-1.0636.
Supports:
- 1.0530 = .50 retracement
- 1.0504 = .618 ret
- 1.0368-58 = confluence area of contracted objective point (COP) and .50 ret
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 1.0856-1.0423.
Resistances:
- 1.0640 = .50 ret
- 1.0691 = .618 ret
Overbought/Oversold
The bigger wave is now moving upwards, so it is prefereable to go long when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (15-30 pips below the current prices). Mind the possibilities to go long at or near the indicated supports.
