FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, August 27, 2010

Wave count on hourly timeframe shows that this currency pair is now moving within daily wave C (colored royal blue on the chart). However there's corrective subwave B (colored red) developing. The targets of the movement up are Fibonacci retracements of 0.9221-0.8772:

- 0.8944 = .382 retracement
- 0.8997 = .50 ret
- 0.9049 = .618 ret

In case the price resumes the downtrend, the targets will be Fibonacci retracements of 0.8772-0.8919, 0.8314-0,9221 and expansions off 0.9221-0.8842-0.8980, 0.8980-0.8772-0.8919:

- 0.8828 = .618 retracement
- 0.8790 = contracted objective point (COP)
- 0.8768 = .50 retracement
- 0.8746 = COP
- 0.8711 = objective point (OP)
- 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.