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 four subwaves (light green in the chart); a potential corrective subwave 4 is developing from 1.0226. Within this wave we have A-B-C cycle that is developing at the moment (orange red in the chart), subwave C started at 1.0291.
Now the resistances are Fibonacci retracements 1.0636-1.0226.
Resistances:
- 1.0479 = .618 retracement
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0226-1.0451 and expansions 1.0856-1.0423-1.0636, 1.0636-1.0226-1.0451.
Supports:
- 1.0365 = .382 ret
- 1.0338 = .50 ret
- 1.0312 = .618 ret
- 1.0203-1.0190 = confluence area of objective point (OP) and contracted objective point (COP)
Overbought/Oversold
The larger wave is now moving up, so it is better to go long when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (current prices as well). Consider the possibilities to go long at or near the indicated supports.
