FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 7, 2011

The AUD/USD is moving within corrective wave against 0.9963-1.0197. This is potential wave B of daily degree - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 0.9963-1.0197, and expansions off 1.0197-1.0080-1.0184, 1.0184-1.0071-1.0159, and also minor retracements of 1.0071-1.0159.

Supports:

- 1.0115 = .50 retracement
- 1.0105 = .618 ret
- 1.0089 = contracted objective point (COP)
- 1.0067 = objective point (OP)
- 1.0052-46 = confluence area of .618 ret and OP
- 0.9995 = expanded objective point (XOP)

If the price continues the uptrend the immediate resistances will be Fibonacci expansions off 0.9963-1.0197-1.0071.

Resistances:

- 1.0216 = COP

Overbought/Oversold

Assuming that medium term trend is down it's preferable to use overbought readings of the Detrended Oscillator (25-35 pips above the current price) or its cross above the zero level (10-15 pips above the current price) to consider short positions.

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