FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, November 24, 2010

AUD/USD is moving within wave C of daily degree - colored royal blue in the chart. In its turn this wave consists of A-B subwaves with corrective subwave B developing. The targets of the upmove are Fibonacci retracements of 0.9956-0.9711 and 0.9897-0.9711.

Resistances:

- 0.9804-05 = confluence area of .50 and .382 retracements
- 0.9826-33 = confluence area of .618 and .50 retracements
- 0.9862 = .618 ret

If the medium term downtrend continues its next strategic targets will be Fibonacci expansions off 1.0182-0.9727-0.9956 (daily waves A-B).

Supports:

- 0.9675 = contracted objective point (COP)
- 0.9501 = objective point (OP)

Overbought/Oversold

The Detrended Oscillator has exceeded the previous peak up which indicates a larger corrective wave developing, potentially to 0.9862 ret. So waiting for a deeper pullback to enter short will be a better option.

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