FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 16, 2010

According to wave count this currency pair is moving within med term downtrend, where there's a set of 5 waves (colored red on the chart). The targets of the downside movement are Fibonacci retracements of 0.8314-0.9221 (strategic retracements), and expansions off 0.9221-0.9058-0.9162, 0.9162-0.8915-0.9036.

Price targets below the current level:

- 0.8875 = .38 retracement (!!! strategic)
- 0.8789 = objective poing (OP)
- 0.8768 = .50 retracement

In case the price turns up the resistances will be Fibonacci retracements of the whole downside movement 0.9221-0.8861:

- 0.8999 = .382 ret
- 0.9041 = .50 ret

Overbought/Oversold

The Detrended Oscillator is clearly overbought. Assuming that the midterm trend is down, one may look for shorts in case of topping signals right now.