AUD/USD is developing corrective wave B (light green in the chart) of medium term downtrend from 0.9581. Within this wave we have three subwaves (magenta in the chart), and impulse subwave C is developing from 0.9820.
Now the immediate resistances are Fibonacci retracements of 1.0473-0.9581, and expansions off 0.9581-1.0002-0.9820.
Resistances:
- 1.0027 = .50 retracement
- 1.0080 = contracted objective point (COP)
- 1.0132 = .618 ret
- 1.0241 = objective point (OP)
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9581-1.0007.
Supports:
- 0.9844 = .382 ret
- 0.9794 = .50 ret
- 0.9744 = .618 ret
Overbought/Oversold
The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (25-35 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.
