FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 17, 2010

Wave count shows that this currency pair is now developing med term downtrend. The upwave forming now is considered corrective. The targets of the upside movement are Fibonacci retracements of 0.9221-0.8861 and expansions off 0.8861-0.8996-0.8948:

- 0.9031 = contracted objective point (COP)
- 0.9041 = .50 retracement
- 0.9083 = confluence area of .618 ret and objective point (OP)
- 0.9166 = expanded objective point (XOP)

In case the price resumes its downside movement the targets will be Fibonacci retracements of 0.8314-0.9221:

- 0.8875 = .382 ret, reached already (!)
- 0.8768 = .50 ret
- 0.8660 = .618 ret

Overbought/Oversold

The Detrended Oscillator is moving into the overbought. The overbought area, according to the indicator, lies some 20 pips above the current level. Assuming that the major trend is down, it's good to seek for topping signals in this area to enter short. Especially if the price hits a significant Fibonacci target.