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. Within the latter we have subwaves A, and B (red in the chart), subwave B is developing from 1.0636. And this wave consists of subwaves A, B, and potential C (yellow in the chart) of a smaller degree.
Now the targets of the downmove are Fibonacci retracements of 1.0423-1.0636, 0.9861-1.0856, and expansions off 1.0856-1.0423-1.0636, 1.0636-1.0457-1.0526.
Supports:
- 1.0415 = contracted objective point (COP)
- 1.0368-58 = confluence area of COP and .50 ret
- 1.0347 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0856-1.0423, 1.0636-1.0457.
Resistances:
- 1.0525 = .382 retracement
- 1.0547 = .50 ret
- 1.0568 = .618 ret
- 1.0640 = .50 ret
- 1.0691 = .618 ret
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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 (15-30 pips below the current prices), watch for possibilities to go long at or near the indicated supports.
Read more on how to trade with Fibonacci levels.
