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

AUD/USD has confirmed subwave C (colored magenta in the chart) within corrective wave 4 of weekly degree (colored plum in the chart). The price has exceede the top of subwave A - 0.9662. Within this wave C there's a set of A-B, wave B is still developing. Its targets are Fibonacci retracements of 0.9867-0.9651, and 0.9973-0.9651.

Resistances:

- 0.9759 = .50 retracement
- 0.9774-84 = confluence area of .382 and .618 retracements
- 0.9812 = .50 ret
- 0.9850 = .618 ret

In case the price resumes midterm downtrend and breaks below 0.9651 the nearest supports will be Fibonacci expansions off 1.0002-0.9662-0.9973, and retracements of 0.8772-1.0002.

Supports:

- 0.9633 = objective point (OP)
- 0.9532 = .382 ret

Overbought/Oversold

The Detrended Oscillator is moving back from the overbought to the zero level, possibly confirming the leg up from 0.9651 is over. Assuming that the medium term trend is down it's preferable to seek for topping signals to enter short when the price hits a Fibonacci resistance or gets into the overbought again - 15-25 pips to go.

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