AUD/USD is developing wave C of daily degree - colored royal blue in the chart. On smaller scale charts this wave consists of impulse subwave A (colored red) and corrective subwave B, which is now developing.
The targets of subwave B are Fibonacci retracements of 0.9956-0.9711.
Resistances:
- 0.9833 = .50 retracement, reached already (!)
- 0.9862 = .618 ret
If the medium term downtrend continues the nearest supports will be Fibonacci expansions off 1.0182-0.9727-0.9956 (daily waves A-B - colored royal blue in the chart), and 0.9956-0.9711-0.9855 (A and B subwaves, measured from the potential end of subwave B).
Supports:
- 0.9704 = contracted objective point (COP)
- 0.9675 = COP
- 0.9610 = objective point (OP)
Overbought/Oversold
The Detrended Oscillator has exceeded the previous peak down, which may be a good manifestation of a downwave of a large degree and that corrective subwave B has possibly ended at 0.9855. Assuming that the prevailing trend is down it's preferable to short on recovery to Fib resistance or when the price gets into the oversold - 20 pips to go.
Read more on how to apply Fibonacci studies to calculate price targets.