FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, October 26, 2010

AUD/USD is moving within corrective wave 4 of weekly degree - colored plum in the chart. Within this wave there's a set of A-B-C subwaves - colored magenta. The downside movement (wave C) will be confirmed when 0.9662 is broken to the downside. Until that moment the nearest supports will be Fibonacci retracements of 0.9662-0.9973, and expansions off 1.0002-0.9662-0.9973.

Supports:

- 0.9854 = .382 retracement
- 0.9817 = .50 ret
- 0.9781 = .618 ret
- 0.9763 = contracted objective point (COP)
- 0.9633 = objective point (OP)

In case the price breaks above 0.9973 and 1.0002 the nearest resistance will be the Fib expansion off 0.9662-0.9973-0.9880.

Resistance:

- 1.0072 = COP

Overbought/Oversold

The Detrended Oscillator is oscillating around the zero confirming the flat. Assuming that the pair is moving within corrective wave down of a large degree it's preferable to wait for a topping signal in the vicinity of the previous peak at 0.9973 or when the price gets into the overbought (20-30 pips to go) to enter short.

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