FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, November 8, 2010

AUD/USD has developed 5 waves of midterm uptrend - colored red in the chart. Current downmove is considered wave A in potential A-B-C cycle. The targets of the corrective downmove are Fibonacci retracements of 0.9651-1.0182, 0.9893-1.0182, and expansions off 1.0182-1.0085-1.0176.

Supports:

- 1.0079-72 = confluence area of objective point (OP) and .382 retracement
- 1.0037 = .50 ret
- 1.0019 = expanded objective point (XOP)
- 1.0003 = .618 ret
- 0.9922 = super expanded objective point (SXOP)

In case the price breaks above 1.0182 to continue the uptrend the nearest resistances will be the expansions off 0.9651-1.0022-0.9893.

Resistances:

- 1.0264 = OP
- 1.0493 = XOP

Overbought/Oversold

The Detrended Oscillator is at the zero level, which confirms the flat. Assuming that the downwave is corretive it's preferable to wait for a deep retracement to a Fib support to start looking for possibilities to enter long.

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