FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - January 25, 2011

The AUD/USD has probably finished corrective wave B of medium term downtrend - colored red in the chart - at 0.9831. Now the targets of the wave up are Fibonacci retracements of 1.0255-0.9803, and expansions off 0.9803-1.0076-0.9831, 0.9831-0.9917-0.9863.

Resistances:

- 1.0082-88 = confluence area of .618 retracement and super expanded objective point (SXOP)
- 1.0104 = objective point (OP)

If the price reverses down the nearest supports will be Fibonacci retracements of 0.9831-1.0021, 0.9863-1.0021.

Supports:

- 0.9926-23 = confluence area of .50 and .618 retracements
- 0.9904 = .618 ret

Overbought/Oversold

Assuming that the medium term trend is up it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero level. The Oscillator is now above the zero so now is not the time to open longs. It's bettern to consider longs when the price hits 0.9926-23 support or lower - 0.9904.

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