FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - February 21, 2011

The AUD/USD is developing subwave 5 (colored orange red in the chart) within impulse wave C of medium term uptrend (colored red in the chart).

The targets of the upmove are Fibonacci expansions off 0.9943-1.0016-0.9969, 0.9969-1.0055-1.0017, 1.0017-1.0137-1.0088.

Resistances:

- 1.0160-62 = confluence area of super expanded objective point (SXOP) and contracted objective point (COP)
- 1.0208 = objective point (OP)
- 1.0242 = SXOP

If the price keeps declining the immediate supports will be Fibonacci retracements of 0.9943-1.0157, 0.9969-1.0157.

Supports:

- 1.0085 = .382 retracement
- 1.0075 = .382 ret
- 1.0063 = .50 ret
- 1.0050 = .50 ret
- 1.0041 = .618 ret
- 1.0025 = .618 ret

Overbought/Oversold

Assuming that the medium term trend is up, it's preferable to use oversold readings (5-15 pips away from the current price) of the Detrended Price Oscillator, or even further support at 1.0085 (.382 ret), to open long positions.

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