FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, December 10, 2010

AUD/USD is developing a corrective wave B against wave A of the medium term uptrend A 0.9539-0.9967 - colored magenta in the chart. Within this donwmove there are subwaves A and B with subwave B still developing - colored red in the chart. The targets above are Fibonacci retracements of 0.9967-0.9755 and expansions off 0.9539-0.9967-0.9755, 0.9755-0.9887-0.9813.

Resistances:

- 0.9886 = .618 retracement, already hit (!)
- 0.9895 = contracted objective point (COP)
- 0.9945 = objective point (OP)
- 1.0020 = COP
- 1.0027 = expanded objective point (XOP)

If the price breaks below 0.9813 and keeps moving down the nearest supports will be Fibonacci retracements of 0.9539-0.9967, and expansions off 0.9967-0.9755-0.9887, 1.0182-0.9539-0.9967.

Supports:

- 0.9756-53 = confluence area of COP and .50 retracement
- 0.9702 = .618 ret
- 0.9675 = OP
- 0.9570 = COP
- 0.9544 = XOP

Overbought/Oversold

Assuming that the wave down is corrective it's preferable to use oversold readings of the Detrended Oscillator (25-35 pips to go) and in conjunction with Fib supports (see above). Until that stand aside.

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