FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, October 21, 2010

This currency pair has developed wave A 1.0002-0.9662 of the med term downtrend and is now moving within corrective wave B - colored magenta in the chart.

The targets of the corrective upmove are Fibonacci retracements of 1.0002-0.9662.

Resistance:

- 0.9872 = .618 retracement, reached already (!)

In case the price resumes its decline the nearest supports will be Fibonacci retracements of 0.9662-0.9889, 0.8772-1.0002, 0.8966-1.0002, and expansions off 1.0002-0.9662-0.9889.

Supports:

- 0.9802 = .382 retracement
- 0.9775 = .50 ret
- 0.9749 = .618 ret
- 0.9549 = objective point (OP)
- 0.9532 = .382 retracement

Overbought/Oversold

The Detrended Oscillator is moving from below the zero level. assuming that the wave up is corrective now it's preferable to stand aside or wait for a topping signal to enter short in the vicinity of the previous fib resistance at 0.9872.

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