FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 8, 2011

The AUD/USD is basically trading in the flat limited by 1.0197-1.0071, however according to wave count that was wave A of medium term downtrend, and the current wave up is potential wave B - only if the price doesn't go any higher than 1.0197.

The targets of the downmove are Fibonacci retracements of 0.9963-1.0197, and expansions off 1.0197-1.0071-1.0188.

Supports:

- 1.0062 = objective point (OP)
- 1.0052 = .618 retracement
- 0.9984 = expanded objective point (XOP)

If the price continues the uptrend the immediate resistances will be Fibonacci expansions off 0.9963-1.0197-1.0071, and 1.0071-1.0188-1.0094.

Resistances:

- 1.0166 = contracted objective point (COP)
- 1.0211-16 = confluence area of OP and COP

Overbought/Oversold

Assuming that this pair is moving in a flat it's preferable to stand aside until a wave of larger degree manifests itself. The overbought are lies 20-25 pips above the current price. The oversold area is 20-30 pips below the current price.

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