FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, July 26, 2010

This currency pair is now moving within longterm and intermediate uptrend. The nearest strategic target - contracted objective point off 0.8314-0.8870-0.8633 - has been reached (0.8977). However this does not mean the advance is over. The nearest resistances are Fibonacci expansions off 0.8633-0.8858-0.8737, 0.8737-0.8970-0.8895.

The price targets above the current level look the following way:

- 0.9039 = contracted objective point (COP)
- 0.9101-09-28 = confluence area of expanded objective point (XOP), and 2 OP's

In case the price starts declining the nearest supports will be Fibonacci retracement point of 0.8737-0.8980.

Supports:

- 0.8887 = .382 retracement
- 0.8859 = .50 ret
- 0.8830 = .618 ret

Overbought/Oversold

The Detrended Oscillator is at the zero level. Assuming that the major trend is up it's better to wait for a retracement some 40-50 pips below that corresponds to the nearest Fib-support - 0.8887 (.382 retracement). In case a bottoming signal appears a "buy" is favored.