AUD/USD has developed wave A of medium term downtrend - colored red in the chart. Now wave B is developing. The targets of the upmove are Fibonacci retracements of 1.0031-0.9833.
Resistances:
- 0.9932 = .50 retracement
- 0.9955 = .618 ret
If the price continues the downtrend its targets below will be Fibonacci retracements of 0.9539-1.0031, and expansions off 1.0031-0.9833-0.9930.
Supports:
- 0.9808 = contracted objective point (COP)
- 0.9785 = .50 ret
- 0.9732-27 = confluence area of objective point (OP) and .618 retracement
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to use overbought readings of the Detrended Oscillator in conjunction with Fib resistances (see above). The overbought area is still 20-30 pips away and that corresponds to 0.9932 retracement. This is a level to consider short positions.
Read more on how to apply Fibonacci studies to calculate price targets.