FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 12, 2010

According to wave count on daily timeframes this currency pair is moving within corrective wave 4 (colored light green). Its targets are Fibonacci retracements of 0.8314-0.9221, and expansions off 0.9221-0.9058-0.9162, 0.9162-0.9014-0.9048:

- 0.8900-0.8898 = confluence area of objective point (OP) and expanded objective point (XOP)
- 0.8875 = .382 retracement
- 0.8809 = XOP

In case the price reverses to the upside the nearest Fibonacci targets will be retracements of the latest leg down - 0.9162-0.8918:

- 0.9011 = .382 ret
- 0.9040 = .50 ret
- 0.9069 = .618 ret

Note that these targets are valid on 0.8978 break, since this is the base of subwave 5 (colored yellow).

Overbought/Oversold

The Detrended Oscillator is oscillating around the zero level. Assuming that the major trend is still up and close vicinity of .382 retracement (0.8875), it's good to wait for a reversal to the upside against one of the Fibonacci supports to enter long.