FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 6, 2010

According to wave count on H1, this currency pair has developed 5 waves of intermediate uptrend (colored red). Now above 0.9182 we may have an extension, and decline below 0.9116 and 0.9070 will indicate that wave 0.8905-0.9182 is over. The targets of the corrective movement are Fibonacci retracements of 0.8905-0.9182:

- 0.9076 = .382 retracement
- 0.9043 = .50 ret
- 0.9011 = .618 ret
- 0.8970 = .764 ret

In case the price breaks above 0.9182, its nearest targets will be:

- 0.9236 = objective point (OP)
- 0.9250 = OP

Overbought/Oversold

The Detrended Oscillator is around its zero level. The market is trading is a very narrow range. For a sure sign of an intermediate wave we need a break out of either 0.9182 or 0.9116 - and the following retracement against that movement will grant us opportunities to enter a position in the direction of the break out.