FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 10, 2010

According to wave count this currency pair is developing wave 5 of the med term uptrend. Within the latter we have a sequence of 2 subwaves, with wave B (colored red on the chart) being corrective. The only targets of the corrective downside movement are Fibonacci retracement points of 0.9091-0.9278.

Supports:

- 0.9207 = .382 retracement; reached already (!)
- 0.9184 = .50 ret
- 0.9162 = .618 ret

In case the price resumes daily and hourly uptrend, the nearest targets will remain the same, as calculated before: Fibonacci expansions off 0.8772-0.9032-0.8862 (waves 1-2 - colored magenta), 0.8862-0.9183-0.9091 (waves 3-4).

Resistances:

- 0.9283-89 = confluence area of strategic levels - expanded objective point (XOP) and contracted objective point (COP)
- 0.9412 = objective point (OP)

Overbought/Oversold

The Detrended Oscillator is slightly above the zero level with overbought some 10-20 pips above the current price and oversold - some 30-40 pips below. Assuming that the prevailing trend is up it's advisable to seek for bottoming signals against one of the Fibonacci resistances or in the oversold area to enter long on any weakness.