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, B and C (royal blue in the chart). Impulse subwave C is developing from 1.0636. Within the latter we have subwaves A, and B (magenta in the chart), subwave B is developing from 1.0336. However, due to exessive advance within corrective subwave B (magenta), wave C (royal blue) from 1.0636 may be coming to an end. Within B (magenta) there are two subwaves (red in the chart), with subwave B still developing from 1.0557.
The targets above are Fibonacci retracements of 1.0856-1.0336.
Resistances:
- 1.0596 = .50 retracement
- 1.0657 = .618 ret
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9861-1.0856, 1.0336-1.0557, and expansions off 1.0856-1.0423-1.0636, 1.0636-1.0336-1.0557.
Supports:
- 1.0420 = .618 ret
- 1.0372-68 = confluence area of two contracted objective points (COP)
- 1.0257 = objective point (OP)
- 1.0241 = .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 (10-15 pips above the current prices) or into the overbought area (40-55 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
