FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 28, 2010

Australian dollar keeps renewing older peaks developing the long- and med term uptrend. According to wave count the current daily wave (colored royal blue) is wave 5. Its targets are Fibonacci expansions off waves 1-2 (0.8772-0.9183-0.9091), and waves 3-4 (0.9091-0.9599-0.9462).

Strategic resistances:

- 0.9756 = expanded objective point (XOP)
- 0.9776 = contracted objective point (COP)

However a shorter term carrection can not be ruled out. If the price keeps declining the next supports will be Fibonacci retracements of 0.9462-0.9644.

Supports:

- 0.9574 = .382 retracement
- 0.9553 = .50 ret
- 0.9532 = .618 ret

Daily wave 5 ends when its base (0.9462) is exceeded by the price.

Overbought/Oversold

The Detrended Oscillator is now standing at the zero line, however the sequence of its peaks doesn't confirm a flat. Therefore, assuming that the prevailing trend is still up it's advisable to look for bottoming signlas against one of the Fibonacci supports listed above to enter long. Or when the price gets into the oversold - 20-30 pips below the current level.

Read more on how to apply Fibonacci studies to calculate price targets.