AUD/USD has finished corrective wave against 1.0439-1.0774 - this is wave B of medium term uptrend - colored royal blue in the chart. Now we have wave C that is developing from 1.0523. Within this wave there are four subwaves with subwave 4 still developing - colored orange red in the chart.
The targets of the downmove within wave C are Fibonacci retracements of 1.0523-1.0714.
Supports:
- 1.0641 = .382 retracement
- 1.0619 = .50 ret
- 1.0596 = .618 ret
If wave C continues the immediate resistances will be Fibonacci retracements of 1.1011-1.0439, and expansions off 1.0439-1.0774-1.0523, 1.0523-1.0637-1.0568, 1.0568-1.0714-1.0658.
Resistances:
- 1.0725-30 = confluence area of .50 ret and contracted objective point (COP)
- 1.0748 = confluence area of COP and expanded objective point (XOP)
- 1.0792 = .618 ret
- 1.0804 = objective point (OP)
Overbought/Oversold
Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (10-55 pips below the current prices) or gets into the oversold area (35-45 pips below the current prices, which roughly corresponds to 1.0641 Fib support).
Read more on how to apply Fibonacci studies to calculate price targets.