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. Current wave has two subwaves - A and B, and subwave B is still developing - colored red in the chart.
The targets of the upmove are Fibonacci retracements of 1.0888-1.0566, and expansions off 1.0536-1.0888-1.0566.
Resistances:
- 1.0689 = .382 retracement
- 1.0727 = .50 ret
- 1.0765 = .618 ret
- 1.0784 = contracted objective point (COP)
- 1.0918 = objective point (OP)
If the price breaks below 1.0566 the immediate supports will be Fibonacci retracements of 0.9709-1.1011, and expansions off 1.1011-1.0536-1.0888, 1.0888-1.0566-1.0697.
Supports:
- 1.0514 = .382 retracement
- 1.0498 = contracted objective point (COP)
- 1.0413 = objective point (OP)
- 1.0375 = OP
- 1.0360 = .50 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 (10-15 pips above the current prices) or gets into the overbought area (35-45 pips above 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.