FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, July 20, 2010

According to wave count this currency pair is trading at the beginning of potential wave C of the intermediate uptrend (colored magenta on the chart).

The targets of the movement to the upside are Fibonacci expansion points off 0.8314-0.8870-0.8633, 0.8633-0.8718-0.8654, we should also take Fib retracements of 0.8870-0.8633 and 0.8848-0.8633 into consideration.

The nearest resistances look the following way:

- 0.8779 = .618 retracement
- 0.8792 = expanded objective point (XOP)
- 0.8797 = .764 ret
- 0.8814 = .764 ret
- 0.8877 = super expanded objective point (SXOP)
- 0.8977 = contracted objective point (COP)

In case the price resumes moving to the downside the immediate supports will be Fibonacci retracement points of the latest leg up from 0.8633.

Overbought/Oversold

The Detrended Oscillator is clearly overbought. This does not mean sell, since the prevailing trend - long and med term - is up. So it's reasonable to wait for a retracement some 40-60 pips down and see if a bottoming signal confirms the planned long position.