FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - January 24, 2011

The AUD/USD is trading within corrective wave B of medium term downtrend - colored red in the chart. The targets of the corrective upmove are Fibonacci retracements of 1.0076-0.9831 and 0.9972-0.9831.

Resistances:

- 0.9918-25 = confluence area of .618 and .382 retracements
- 0.9953 = .50 ret
- 0.9982 = .618 ret

If the price breaks below 0.9831 the nearest supports will be Fibonacci expansions off 1.0255-0.9803-1.0076 and 1.0076-0.9831-0.9972.

Supports:

- 0.9797 = contracted objective point (COP)
- 0.9766 = COP
- 0.9672 = objective point (OP)

Overbought/Oversold

Assuming that the medium term trend is down it's preferable to use overbought readings of the Detrended Oscillator or its cross above the zero level. The Oscillator is now above the zero and possibly moving into the overbought. The levels to watch for short positions are 0.9918-0.9925 (confluence area of Fib resistances).

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