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

The AUD/USD is moving within impulse wave C - colored royal blue in the chart. This wave is composed of waves A and B, which is still developing, of smaller degree - colored magenta in the chart. The corrective subwave B will be over if the price exceeds 1.0197.

At this moment the targets of the upmove are Fibonacci expansions off 0.9968-1.0197-1.0080, 1.0080-1.0177-1.0138.

Resistances:

- 1.0198 = contracted objective point (COP)
- 1.0225 = COP
- 1.0235 = objective point (OP)

If the price keeps declining the immediate supports will be Fibonacci retracements of 1.0080-1.0177, 1.0001-1.0197, 0.9963-1.0197, and expansions off 1.0197-1.0080-1.0177.

Supports:

- 1.0129 = .50 retracement
- 1.0117 = .618 ret
- 1.0105 = COP
- 1.0080-76 = confluence area of .50 and .618 retracements
- 1.0060 = OP
- 1.0052 = .618 ret

Overbought/Oversold

Assuming that medium term trend is up it's preferable to use oversold readings of the Detrended Oscillator (30-40 pips below the current price) or its cross above the zero level (10-15 pips below) to consider long positions.

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