FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 20, 2010

Wave count shows that this currency pair is trading within potential impulse wave C of the med term downtrend - colored magenta on the chart. The targets of this downside movement are Fibonacci expansions off wave AB 0.9221-0.8861-0.9078, subwaves AB (colored red) 0.9078-0.8947-0.9019, and also retracements of 0.8314-0.9221:

- 0.8856 = contracted objective point (COP)
- 0.8807 = expanded objective point (XOP)
- 0.8768 = .50 retracement
- 0.8718 = objective point (OP)
- 0.8676 = super expanded objective point (SXOP)
- 0.8660 = .618 retracement

In case the price reverses to the upside, the nearest targets will be Fibonacci retracements of the downwave starting from 0.9078.

Overbought/Oversold

The Detrended Oscillator is around the zero level. Assuming that the major trend is down, it's good to wait for topping signals around the overbought area some 20-30 pips above the current price and enter short.