AUD/USD has developed wave 0.9727-0.9956 and is now correcting it until 0.9727 is broken to the downside. According to wave count 0.9727 is the start of wave C of larger degree - colored royal blue in the chart.
The targets of the medium term downtrend are Fibonacci expandions off 1.0182-0.9727-0.9956, 0.9956-0.9826-0.9897.
Supports:
- 0.9767 = objective point (OP)
- 0.9687 = expanded objective point (XOP)
- 0.9675 = contracted objective point (COP)
If the price reverses up the nearest resistances will be Fibonacci retracements of the wave down from 0.9956 - the wave is not developed yet.
Overbought/Oversold
The Detrended Oscillator by breaking under previous peak has shown a wave of a larger degree. It indicates that the downmove from 1.0182 may continue below 0.9927. Assuming that the medium term trend is down it's preferable to sell AUD on recovery. Since no Fib resistances are available at the moment it's better to wait for a wave up to calculate its Fibonacci targets.
Read more on how to apply Fibonacci studies to calculate price targets.