The AUD/USD has finished corrective wave B (0.9903-0.9987) of medium term downtrend - colored red in the chart - and now is developing wave C. Within wave C there are A-B-C subwaves - colored orange red in the chart. The targets below the current price level are Fibonacci retracements of 0.9540-1.0255, and expansions off 1.0255-0.9903-0.9987, 0.9987-0.9878-0.9968.
Supports:
- 0.9813 = .618 retracement
- 0.9792 = expanded objective point (XOP)
- 0.9769 = contracted objective point (COP)
- 0.9709 = .764 ret
- 0.9683 = super expanded objective point (SXOP)
If the price reverses up the nearest resistances will be Fibonacci retracements of the downwave from 0.9968 - this wave is not developed yet.
Overbought/Oversold
Assuming that medium term trend is down, it's preferable to use overbought readings of the Detrended Oscillator or its cross above the zero level to consider short positions. The oscillator is clearly oversold. The next opportunity comes when the oscillator gets above its zero line which is 50 pips away - this roughly corresponds to 0.9900.
Read more on how to apply Fibonacci studies to calculate price targets.