FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 15, 2011

The AUD/USD is developing wave C of medium term downtrend - colored royal blue in the chart. On smaller scale this wave includes A-B-C subwaves with subwave C still in development - colored red in the chart. The targets of the downmove are Fibonacci expansions off 1.0197-0.9972-1.0162, 1.0162-1.0050-1.0112.

Supports:

- 0.9931 = expanded objective point (XOP)
- 0.9819 = super expanded objective point (SXOP)
- 0.9798 = XOP

If the price reverses up the immediate resistances will be Fibonacci retracements of 1.0112-0.9929.

Resistances:

- 0.9999 = .382 retracement
- 1.0021 = .50 ret
- 1.0042 = .618 ret

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 - 25-35 pips above the current price level, or when it gets into the overbought area - 50-70 pips above the current price, and that roughly corresponds to 1.0021-42 resistance.

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