The AUD/USD pair is developing the potential corrective wave B of the medium term uptrend (coral in the chart) from 1.0856 comprisisng subwaves A, B and C (royal blue in the chart). An impulse subwave C is developing from 1.0636 and includes subwaves A, B (magenta in the chart); an impulse wave C is developing from 1.0557 and has its on subwaves (red in the chart) namely A, and B that is developing from 1.0304. Within it there are subwaves (orange red) A, B, and C that is developing from 1.0343.
The upside targets are Fibonacci retracements 1.0856-1.0304, 1.0557-1.0304 expansions 1.0304-1.0415-1.0343.
Resistances:
- 1.0454 = objective point (OP)
- 1.0460 = .618 ret
- 1.0523 = expanded objective point (XOP)
- 1.0580 = .50 retracement
- 1.0645 = .618 ret
The downside targets below are Fibonacci retracements 0.9861-1.0856 and expansions 1.0856-1.0423-1.0636, 1.0636-1.0336-1.0557, 1.0557-1.0304-1.0453.
Supports:
- 1.0297 = contracted objective point (COP)
- 1.0257 = objective point (OP)
- 1.0241 = .618 retracement
- 1.0203-00 = confluecnce area of two OP's
Overbought/Oversold
The larger wave is now moving downside, so it is better to go short when the Detrended Oscillator goes above the zero level (15-20 pips above the current prices) or into the overbought area (40-55 pips above the current prices). Consider the possibilities to go short at or near the indicated resistances.
Read more on how to trade with Fibonacci levels.