FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, November 19, 2010

AUD/USD is moving within corrective wave against 1.0182-0.9727. The targets of this corrective move are only represented by Fibonacci retracements of 1.0182-0.9727.

Resistances:

- 0.9901 = .382 retracement, reached already (!)
- 0.9954 = .50 ret
- 1.0008 = .618 ret

If the price keeps its decline the supports will be Fibonacci retracements of 0.9778-0.9914 and 0.9727-0.9914.

Supports:

- 0.9846-43 = confluence area - .50 and .382 retracements, reached already (!)
- 0.9830 = .618 ret
- 0.9820 = .50 ret
- 0.9798 = .618 ret

Overbought/Oversold

Although the Detrended Oscillator is in the oversold area (providing a good long entry point) and medium term trend is up, it is not recommended to chase the move up. Major trend is still against the Australlian dollar, therefore for the time being it's better to stand aside until a larger wave down reveals itself.

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