FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, July 15, 2010

AUD/USD is still standing in longterm and intermediate uptrend. The confirmation of the intermediate trend is the break of 0.8870. The trend is cancelled if price breaks 0.8682, since this level is the base of the most recent leg up. However the intermediate trend is now being corrected, and the targets of the downside movement are Fibonacci retracement points of 0.8682-0.8870 and 0.8314-0.8870.

Here are the nearest supports:

- 0.8776 = .50 retracement
- 0.8754 = .618 retracement
- 0.8658 = .382 retracement

In case the price keeps moving upward the targets above remain the same:

- 0.8893 = contracted objective point (COP)
- 0.9023 = objective point (OP)

Overbought/Oversold

The Detrended Oscillator is slightly below the zero level. The oversold are is within 10-20 pips away. The nearest Fib support that corresponds to this area is 0.8776. So if the price provides a reversal signal against this level a long position from this area is favored.