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

AUD/USD is moving in wave C of daily degree - colored royal blue in the chart. On smaller timeframes it consists of A-B-C subwaves - colored red - with subwave C still developing. The targets of this downmove are Fibonacci expansions off daily waves 1.0182-0.9727-0.9956, hourly 0.9956-0.9711-0.9855, and still smaller waves 0.9855-0.9764-0.9834 (colored orange red in the chart), and 0.9827-0.9615-0.9690 (colored yellow).

Supports:

- 0.9596 = super expanded objective point (SXOP), reached already (!)
- 0.9559 = contracted objective point (COP)
- 0.9501 = objective point (OP)
- 0.9478 = OP
- 0.9459 = expanded objective point (XOP)

If the price reverses up for a correction the nearest resistances will be retracements of the wave down from 0.9834 - this wave is not developed yet. It will be over when 0.9690 (base of subwave 5) is broken.

Overbought/Oversold

The Detrended Oscillator is residing more under its zero level, which confirms the strength of the downtrend. Assuming that it is still down it's preferable to open shorts but only on recovery to Fib resistances (not available yet) or when the price gets above the zero and/or in the oversold (20-30 pips to go).

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