FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 14, 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 ABC hourly subwaves (colored red on the chart) with wave C being the impulse. Within the latter subwave C we have a set of 5 minor waves (colored yellow).

The targets of the upside movement are the old Fibonacci expansions off 0.8772-0.9032-0.8862 (waves 1-2 - colored magenta), 0.8862-0.9183-0.9091 (waves 3-4), and the new ones off 0.9091-0.9270-0.9207 (colored red), and 0.9207-0.9269-0.9237 (yellow), and 0.9237-0.9320-0.9293 (yellow).

Resistances:

- 0.9376 = objective point (OP)
- 0.9386 = OP
- 0.9399 = super expanded objective point (SXOP)
- 0.9427 = expanded objective point (XOP)
- 0.9447 = XOP
- 0.9510 = SXOP

In case the price reverses down for a correction the nearest supports will be Fibonacci retracements of 0.9207-0.9357.

Supports:

- 0.9300 = .382 retracement
- 0.9282 = .50 ret
- 0.9264 = .618 ret

Overbought/Oversold

The Detrended Oscillator is moving to the oversold, which is still some 20 pips above the current price. Assuming that the prevailing trend is up it's recommended to look for bottoming signals against one of the Fibonacci resistances or in the oversold area which is 20-25 pips below the current price.