FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 15, 2010

AUD/USD is still continuing a strong medium term uptrend. We have a set of 5 major waves (colored magenta), and a set of 5 minor waves (colored red) within wave 5. The targets of the upside movement remain basically unchanged. They 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), 0.9091-0.9270-0.9207 (1-2 - colored red), 0.9207-0.9357-0.9313 (3-4 - colored red).

Resistances:

- 0.9463 = objective point (OP)
- 0.9497 = expanded objective point (XOP)
- 0.9543 = super expanded objective point (SXOP)
- 0.9556 = XOP

In case the price reverses down for a correction the nearest supports will be Fibonacci retracements of 0.9091-0.9456.

Supports:

- 0.9317 = .382 retracement
- 0.9274 = .50 ret
- 0.9230 = .618 ret

Overbought/Oversold

The Detrended Oscillator is in the oversold. And assuming the wider swings we can suggest the trend may be changing at least for a correction. Therefore start acting only when the price hits a Fibonacci support listed above. Look for bottoming signals to enter long.