The AUD/USD is developing corrective subwave B (colored orange red in the chart) within wave 5 of medium term uptrend - colored red in the chart. The targets of the downmove are Fibonacci retracements of 1.0064-1.0155, and if the price goes below 1.0164, we get new targets as retracements of 0.9784-1.0155, 0.9709-1.0155.
Supports:
- 1.0110 = .50 retracement
- 1.0099 = .618 ret
- 1.0013 = .382 ret
- 0.9985 = .382 ret
- 0.9970 = .50 ret
- 0.9932-26 = confluence area of .50 and .618 retracements
- etc.
If the uptrend continues the immediate resistances will be Fibonacci expansions off 0.9709-0.9876-0.9784, 0.9784-1.0155-1.0064.
Resistances:
- 1.0221 = super expanded objective point (SXOP)
- 1.0293 = contracted objective point (COP)
Overbought/Oversold
Assuming that the medium term trend is up, it's preferable to look for longs when the Detrended Oscillator goes below the zero level (current prices) or gets into the oversold area (15-25 pips to go).
Read more on how to apply Fibonacci studies to calculate price targets.