FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 10, 2011

The AUD/USD is moving within subwave C (colored red in the chart) that is part of wave C of larger degree - colored magenta in the chart. Now the targets of the downmove are Fibonacci expansions off 1.0197-1.0071-1.0188, 1.0188-1.0057-1.0135.

Supports:

- 1.0004 = objective point (OP)
- 0.9984 = expanded objective point (XOP)
- 0.9923 = XOP

If the price reverses up the immediate resistances will be Fibonacci retracements of the wave down from 1.0135 - however this wave is not developed yet.

Overbought/Oversold

Assuming that the medium term trend is down it's preferable to look for shorts when the Detrended Oscillator gets above the zero - 20-30 pips above the curreht price, or when it gets into the overbought area - 35-45 pips above the current price.

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