FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, July 30, 2010

According to wave count this currency pair is now developing wave C of weekly degree. The strategic targets of this movement are Fibonacci expansions off 0.8066-0.8861-0.8314 and 0.8314-0.8870-0.8633. On smaller timeframes the targets are Fib expansions off 0.8633-0.8858-0.8737.

So the strategic targets above the current price level look the following way:

- 0.9101-09 = confluence area of expanded objective point (XOP) and objective point (OP)
- 0.9189 = OP

The intermediate trend is also up, however corrective wave 4 is forming now (colored magenta on the chart). The targets of this wave are Fibonacci retracements of 0.8633-0.9068, 0.8737-0.9068 and expansions off 0.9068-0.8905-0.9042:

- 0.8941 = contracted objective point (COP)
- 0.8902 = confluence area of .382 and .50 retracements
- 0.8879 = OP
- 0.8863 = .618 ret
- 0.8851 = .50 ret

Overbought/Oversold

The Detrended Oscillator is now at the zero level. The nearest oversold level is 40-50 pips below (see corresponding Fibonacci supports there). Assuming that the major trend is still up it's good to look for a reversal signal against one of the listed Fibonacci supports for a buy.