AUD/USD has developed wave 1.0536-1.0888 which is now corrective wave B according to wave count - colored magenta in the chart. Now potential impulse wave C is developing, break below 1.0536 is needed to confirm it. Now the targets below the current price are Fibonacci retracements of 0.9709-1.1011, and expansions off 1.1011-1.0536-1.0888, 1.0888-1.0663-1.0713.
Supports:
- 1.0594 = contracted objective point (COP)
- 1.0574 = COP
- 1.0514 = .382 retracement
- 1.0488 = objective point (OP)
- 1.0413 = OP
- 1.0360 = .50 ret
- 1.0349 = expanded objective point (XOP)
If the price reverses up the immediate resistances will be Fibonacci retracements of 1.0888-1.0585.
Resistances:
- 1.0701 = .382 ret
- 1.0737 = .50 ret
- 1.0772 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (35-40 pips above the current prices) or gets into the overbought area (55-65 pips below the current prices), or hits a Fib resistance at 1.0701 (.382 retracement).
Read more on how to apply Fibonacci studies to calculate price targets.