AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are three subwaves (light green in the chart), subwave C is developing from 1.0636. Within this wave we have A-B-C cycle that is developing now (royal blue in the chart), subwave C started at 1.0465. Within the latter we also have three subwaves (yellow in the chart), and subwave C is developing from 1.0388.
The targets below are Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0423-1.0636, 1.0636-1.0304-1.0465, 1.0465-1.0352-1.0388.
Supports:
- 1.0260 = contracted objective point (COP)
- 1.0241 = .618 retracement
- 1.0205-03 = confluence area of expanded objective point (XOP) and objective point (OP)
- 1.0133 = OP
- 1.0092 = super expanded objective point (SXOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0465 - this wave is not developed yet, so no resistances are available so far.
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 (15-20 pips above the current prices) or into the overbought area (45-60 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
