FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, November 2, 2010

AUD/USD is about to continue the long term uptrend and develop wave 5 of weekly degree. As far as wave count on smaller timeframes is concerned, this pair is developing wave C of the med term uptrend - colored red in the chart. Its targets are Fibonacci expansions off 0.9651-0.9819-0.9678, as well as expansions off smaller waves 0.9678-0.9914-0.9833.

Resistances:

- 1.0002 = local peak
- 1.0069 = objective point (OP)
- 1.0118 = super expanded objective point (SXOP)

In case the price reverses for a corrective wave the nearest supports will be Fibonacci retracements of the waves up starting from 0.9833 and from 0.9678 - waves not developed yet.

Overbought/Oversold

The Detrended Oscillator is in the highly overbought area. Assuming that the prevailing trend is up, it's preferable to wait for a retracement to open a long position on weakness - when the price hits a Fibonacci support (not available right now) or gets closer to the zero level - 50-60 pips to go.

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