FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 4, 2011

The AUD/USD is developing potential impulse subwave C (colored red in the chart) within corrective wave B of larger degree - colored magenta in the chart. The targets of the downmove are Fibonacci retracements of 1.0080-1.0177, 1.0001-1.0197, and expansions off 1.0197-1.0080-1.0184.

Supports:

- 1.0112 = contracted objective point (COP)
- 1.0076 = .618 retracement
- 1.0067 = objective point (OP)
- 1.0052 = .618 ret
- 0.9995 = expanded objective point (XOP)

If the price continues the uptrend the immediare resistances will be Fibonacci retracements of 1.0184-1.0109, and expansions off 0.9968-1.0197-1.0080, 1.0080-1.0080-1.0184-1.0109.

Resistances:

- 1.0147 = .50 ret
- 1.0155 = .618 re
- 1.0173 = COP
- 1.0213 = OP
- 1.0225 = COP

Overbought/Oversold

Assuming that medium term trend is still up it's preferable to use oversold readings of the Detrended Oscillator (25-35 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.