The AUD/USD pair is developing the potential corrective wave B of the medium term uptrend (coral in the chart) from 1.0856. Within this wave there are three subwaves (light green in the chart); the subwave C is developing from 1.0636 comprising A-B-C cycle that is developing at the moment (royal blue in the chart), subwave C started at 1.0465. Within the latter we also have three subwaves (red in the chart), and potential impulse subwave C is developing from 1.0336. It also contains subwaves A-B-C (yellow in the chart, and C is developing from 1.0315.
Now the immediate supports are Fibonacci retracements 0.9861-1.0856 and expansions 1.0856-1.0423-1.0636, 1.0636-1.0304-1.0465, 1.0465-1.0243-1.0336, 1.0336-1.0272-1.0315.
Supports:
- 1.0251 = objective point (OP)
- 1.0241 = .618 retracement
- 1.0211 = expanded objective point (XOP)
- 1.0203-1.0199 = confluence area of OP and contracted objective point (COP)
The upside targets og the current price are Fibonacci retracements 1.0465-1.0243.
Resistances:
- 1.0354 = .50 ret
- 1.0380 = .618 ret
Overbought/Oversold
The larger wave is now moving downside, so it is prefereable to go short when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (30-45 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
