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); subwave C is developing from 1.0636 comprising A-B-C cycle that is presently developing (royal blue in the chart); the subwave C started at 1.0465. Within the latter we have three subwaves (magenta in the chart) and an impulse subwave C developing from 1.0355.
The immediate supports are Fibonacci expansions 1.0856-1.0423-1.0636, 1.0636-1.0304-1.0465, 1.0465-1.0243-1.0355.
Supports:
- 1.0218 = contracted objective point (COP)
- 1.0203 = objective point (OP)
- 1.0133 = OP
The upside targets are Fibonacci retracements 1.0355-1.0226.
Resistances:
- 1.0291 = .50 retracement
- 1.0306 = .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 (current prices), watch for possibilities to go short at or near the indicated resistances.
