AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are three subwaves (light green in the chart), and potential corrective subwave 4 is developing from 1.0226. Within this wave we have A-B-C cycle that is developing now (orange red in the chart), subwave C started at 1.0291.
Now the resistances are Fibonacci retracements of 1.0636-1.0226, and expansions off 1.0226-1.0332-1.0291.
Resistances:
- 1.0383 = .382 retracement
- 1.0397 = objective point (OP)
- 1.0431 = .50 ret
- 1.0463 = expanded objective point (XOP)
- 1.0479 = .618 ret
If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0226. This wave is not developed yet, so no supports are available so far.
Overbought/Oversold
The larger wave is now moving up, so it's prefereable to go long when the Detrended Oscillator goes below the zero level (40-45 pips below the current prices) or into the oversold area (60-70 pips below the current prices), watch for possibilities to go long at or near the indicated supports.
Read more on how to trade with Fibonacci levels.