AUD/USD has finished wave 0.9709-1.1011 (wave A of long term uptrend) and now is developing correction against it. The targets of the downmove are Fibonacci retracements of 0.9709-1.1011 (wave A), 1.0389-1.1011 (subwave C within wave A), 1.0442-1.1011 (subwave C within C), and also Fibonacci expansions off 1.1011-1.0789-1.0876, 1.0876-1.0725-1.0770.
Supports:
- 1.0700 = .50 retracement
- 1.0677 = contracted objective point (COP)
- 1.0659-54 = confluence area of .618 ret and objective point (OP)
- 1.0627-19 = confluence area of .618 ret and another OP
- 1.0526-17-14 = confluence area of two expanded objective points (XOP) and .382 ret
If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 1.0876 and 1.1011 - these waves are not developed yet.
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try shorts when the Detrended Oscillator goes above the zero level (25-30 pips above the current prices) or gets into the overbought area (45-55 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.