The AUD/USD pair is developing the potential corrective wave B of the medium term uptrend (coral in the chart) from the point 1.0856. Within this wave there are the waves A, B, and the potential impulse subwave C (magenta in the chart) that is developing from 1.0669. The latter subwave comprises the smaller waves (orange red in the chart) and the impulse subwave developing from 1.0625.
The downside targets below are Fibonacci retracements of 0.9861-1.0856 and expansions 1.0856-1.0509-1.0669, 1.0669-1.0574-1.0625.
Supports:
- 1.0476-71 = confluence area of .382 retracement and expanded objective point (XOP)
- 1.0455 = contracted objective point (COP)
- 1.0376 = super expanded objective point (SXOP)
- 1.0358 = .50 ret
- 1.0322 = objective point (OP)
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements 1.0856-1.0509.
Resistances:
- 1.0682 = .50 ret
- 1.0723 = .618 ret
Overbought/Oversold
The larger wave is now moving downwards, so it is recommended to open the short positions when the Detrended Oscillator goes above the zero level (15-20 pips above the current prices) or into the overbought area (35-50 pips above the current prices). Consider the possibilities for short positions at or near the indicated resistances.
Read more on how to trade with Fibonacci levels.