FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 1, 2010

According to wave count on hourly timeframe, this currency pair is now moving in pontential wave C (colored red on the chart) that is within corrective wave B (colored light green) of a larger degree. The targets of the upside movement are Fibonacci retracements of 0.9221-0.8772 and expansions off 0.8772-0.9030-0.8862.

Resistances:

- 0.9021 = contracted objective point (COP)
- 0.9049 = .618 retracement
- 0.9120 = objective point (OP)

In case the price resumes its downside movement the strategic supports are Fibonacci expansions off 0.9221-0.8772-0.9032 and 0.9032-0.8912-0.8957 and retracements of 0.8314-0.9221.

Supports:

- 0.8768-63-55 = confluence area of .50 retracement, expanded objective point (XOP) and COP
- 0.8660-43 = confluence area of .618 ret and super expanded objective point (SXOP)

Overbought/Oversold

The Detrended Oscillator is in the overbought area. Assuming that the movement up is considered corrective from the longer term perspective, it's advisable to stand aside until ABC cycle indicating a larger wave down appears. For short term entries the oversold area some 40-50 pips below may be cosidered the support to look for bottoming signals for long positions.