FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, October 29, 2010

AUD/USD is developing wave C of the midterm downtrend - colored magenta in the chart. Within this wave there's corrective wave B that is developing. Its targets are Fibonacci retracements of 0.9973-0.9651.

Resistances:

- 0.9812 = .50 retracement, reached (!)
- 0.9850 = .618 ret

In case the price continues the medium term downtrend the nearest resistances will be Fibonacci retracements of 0.8772-1.0002, expansions off 1.0002-0.9662-0.9973, 0.9973-0.9651-0.9819.

Supports:

- 0.9633 = objective point (OP)
- 0.9620 = contracted objective point (COP)
- 0.9532 = .382 ret
- 0.9497 = OP
- 0.9423 = expanded objective point (XOP)

Overbought/Oversold

The Detrended Oscillator is consolidating around the zero level confirming the flat and giving no possible entry points so far. Assuming that the prevailing trend is down, it's preferable to seek for a topping signal to enter short when the price hits a Fibonacci resistance or gets into the overbought - 20-30 pips to go.

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