FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, December 6, 2010

This currency pair has developed downwave 1.0182-0.9539 and is now moving in a corrective wave agains this movement - in wave B - colored light green in the chart. The upmove now consists of 5 subwaves and wave A that is developing against wave 5 - colored orange red in the chart. The targets of the corrective upmove are Fibonacci retracements of 1.0182-0.9539, and expansions off 0.9539-0.9700-0.9624 (subwaves 1-2), 0.9624-0.9781-0.9742.

Resistances:

- 0.9936 = .618 retracement, already hit (!)
- 0.9996 = expanded objective point (XOP)
- 1.0045 = super expanded objective point (SXOP)

If the price keeps its decline against the movement 0.9539-0.9941 the nearest supports will be retracements of this movement (0.9539-0.9941) and of 0.9742-0.9941.

Supports:

- 0.9841 = .50 ret
- 0.9818 = .618 ret
- 0.9787 = .382 ret
- 0.9740 = .50 ret
- 0.9693 = .618 ret

Overbought/Oversold

At this moment the Detrended Oscillator is oversold and gives a good chance to use this bottoming signal to enter long - to buy stop oneself into the market on smaller timeframes, for instance. Long entries can also be considered when price hits 0.9841 or 0.9818.

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