AUD/USD Elliott wave count and Fibonacci levels, December 9, 2010

AUD/USD is developing a corrective wave against wave A 0.9539-0.9967 - colored magenta in the chart. Within corrective wave B there are two subwaves - A and B with B still developing (colored red in the chart). All in all the targets of the downmove are only Fibonacci retracements of 0.9539-0.9967.

Supports:

- 0.9753 = .50 retracement
- 0.9702 = .618 ret

If the price keeps moving up the nearest resistances will be Fibonacci retracements of 0.9967-0.9755 and expansions off 0.9539-0.9967-0.9755.

Resistances:

- 0.9886 = .618 ret
- 1.0020 = contracted objective point (COP)

Overbought/Oversold

Assuming that the wave down is corrective it's preferable to use oversold readings of the Detrended Oscillator (30-40 pips to go) and in conjunction with Fib supports (see above). Until that happens - stand aside.

Read more on how to apply Fibonacci studies to calculate price targets.