FX.co ★ AUD/USD Elliott wave count and Fibonacci levels, December 28, 2010

This currency pair is now moving within wave C of daily degree (the wave and expansions off A-B waves are colored royal blue in the chart). Within this wave C there are five subwaves - colored magenta. And subwave 5 is still developing. Within subwave 5 there are still smaller waves A-B-C (colored yellow in the chart) with subwave C still developing.

The targets of the upmove are Fibonacci expansions off 0.9539-1.0031-0.9833 (waves A-B of larger degree, daily), 0.9833-0.9930-0.9843 (waves 1-2), 0.9843-1.0069-0.9990 (waves 3-4), and 0.9990-1.0060-1.0013 (subwaves A-B within wave 5).

Resistances:

- 1.0094 = super expanded objective point (SXOP)
- 1.0126-30-37 = confluence area of expanded objective point (XOP) and two contracted objective points (COP)

If the price reverses down the nearest supports will be Fibonacci retracements of the wave up from 1.0013 - this wave is not developed yet.

Overbought/Oversold

Assuming that the prevailing trend is up it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero level to consider long positions. The zero level is 15 pips away from the current price, the oversold area is 30-35 pips away from the current price which may correspond to a Fib support only on smaller timeframes, so stand aside in the meantime.

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