FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 26, 2010

According to wave count this currency pair is now developing a strong med term downtrend. However now there's a corrective wave developing. Its targets are Fibonacci retracements of 0.8980-0.8772:

- 0.8876 = .50 retracement, reached already
- 0.8901 = .618 retracement

In case the price continues moving down its targets below the current level will be Fibonacci expansions off 0.9221-0.8842-0.8980, and retracements of 0.8314-0.9221:

- 0.8768 = .50 retracement
- 0.8746 = contracted objective point (COP)
- 0.8660 = .618 retracement

Overbought/Oversold

The Detrended Oscillator is moving into the overbought area. Assuming that the major trend is down and the wave up is still corrective, it's advisable to seek for topping signals to enter short against one of the Fibonacci resistances listed above.