FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, October 8, 2010

Australlian dollar has retreated from the all-time high of 0.9916 and is now developing a corrective subwave B (colored red) within impulse wave C (colored royal blue in the chart). The targets of the corrective downmove are Fibonacci retracements of 0.9541-0.9916 and expansions off 0.9916-0.9782-0.9846.

Supports:

- 0.9773-63 = confluence area of .382 retracement and contracted objective point (COP)
- 0.9728 = .50 ret
- 0.9712 = objective point (OP)
- 0.9684 = .618 ret
- 0.9629 = expanded objective point (XOP)

In case the price reverses up to continue the uptrend the nearest resistances will be Fibonacci expansions of the daily waves and subwaves 0.8772-0.9599-0.9462, 0.9462-0.9749-0.9541.

Resistances:

- 0.9973 = COP
- 1.0005 = expanded objective point (XOP)

Overbought/Oversold

The Detrended Oscillator is in the oversold area presenting a good opportunity to enter a new long in case the price starts reversing. Better yet would be an entry on Fib support listed above.

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