FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - February 3, 2011

The AUD/USD is developing corrective subwave B (colored red in the chart) within impulse wave C of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 0.9956-1.0147, 0.9865-1.0147.

Supports:

- 1.0052 = .50 retracement
- 1.0039 = .382 ret
- 1.0029 = .618 ret
- 1.0006 = .50 ret
- 0.9973 = .618 ret

If the price breaks above 1.0147 the nearest resistances will be Fibonacci retracements of 1.0255-0.9803, and expansions off 0.9803-1.0076-0.9831, 0.9831-1.0021-0.9865, 0.9865-1.0147-1.0054.

Resistances:

- 1.0148 = .764 ret
- 1.0172 = expanded objective point (XOP)
- 1.0228 = contracted objective point (COP)
- 1.0273 = XOP

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 to consider long positions. The Oscillator is now in the oversold therefore now is the moment to consider long positions from supports at 1.0074, 1.0052 and 1.0039.

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