FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 1, 2011

The AUD/USD is developing corrective subwave 4 (colored red in the chart) within impulse wave C of medium term uptrend (colored magenta in the chart). The tragets of the corrective downmove are Fibonacci retracements of 1.0090-1.0197, 1.0001-1.0197, 0.9963-1.0197.

Supports:

- 1.0143 = .50 retracement
- 1.0131-22 = .618 and .382 retracements
- 1.0108-1.0099 = .382 and .50 retracements
- 1.0080-76 = .50 and .618 retracements
- 1.0052 = .618 ret

If the uptrend resumes and the price breaks above 1.0197 the immediate resistances will be Fibonacci expansions off 0.9943-1.0157-0.9963, 0.9963-1.0082-1.0001, 1.0001-1.0197-1.0145.

Resistances:

- 1.0266 = contracted objective point (COP)
- 1.0309 = expanded objective point (XOP)

Overbought/Oversold

Assuming that the trend is still up, it's preferable to use oversold readings of the Detrended Oscillator (10-20 pips below the current price) to consider long positions, since the price has already hit Fib supports at 1.0156 and 1.0143.

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