FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, September 30, 2010

Australian dollar is developing wave 5 of the daily uptrend (colored royal blue on the chart). Within this wave we have a set of 3 waves - A-B-C - and wave 4 developing - colored red on the chart. Within this wave 4 we have a set of 3 subwaves with wave C in development.

The targets of the corrective decline are Fibonacci retracements of wave 3 - 0.9558-0.9729, and expansions off the subwaves within wave 4 - 0.9729-0.9675-0.9717.

Supports:

- 0.9644 = .50 retracement
- 0.9630-23 = confluence area of expanded objective point (XOP) and .618 retracement
- 0.9576 = super expanded objective point (SXOP)

In case the price resumes the uptrend the targets will remain the same. We'll use Fibonacci expansions off daily waves 1-2 (0.8772-0.9183-0.9091), waves 3-4 (0.9091-0.9599-0.9462), and waves of smaller degree - 0.9462-0.9644-0.9558.

Resistances:

- 0.9740 = objective point (OP)
- 0.9756 = XOP
- 0.9776 = contracted objective point (COP)

Overbought/Oversold

The Detrended Oscillator is in the oversold area, confirming the corrective wave down. Assuming that the prevailing trend up is still unchanged, it's advisable to already be seeking for bottoming signals to enter long - either when the price hits a Fibonacci support, or gets out of the oversold.

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