FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 7, 2010

According to wave count this currency pair has just developed 5 waves of med term uptrend (colored red on the chart). And now corrective wave A is being formed.

The targets of the downside movement are Fibonacci retracements of 0.9068-0.9183, 0.8862-0.9183, and 0.8772-0.9183.

Supports:

- 0.9112 = .618 retracement
- 0.9060 = .382 ret
- 0.9026-23 = confluence area of .382 and .50 retracements
- 0.8985-78 = confluence area of .618 and .50 retracements
- 0.8929 = .618 ret

In case the price breaks above 0.9183 and resumes upside movement the nearest targets will be the old Fibonacci expansions off 0.8772-0.9030-0.8862 and the new ones off 0.8862-0.9122-0.9068.

Resistances:

- 0.9229 = contracted objective point (COP)
- 0.9279 = expanded objective point (XOP)

Overbought/Oversold

The Detrended Oscillator is in the oversold area. The oscillator has breached the previous down peaks - indicating a change in the trend. Therefore it's advisable to wait for a retracement that does not change the structure of the downtrend and look for a topping signal to enter short. The nearest overbought area to watch for is 50-60 above the current price.