FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 25, 2011

The AUD/USD is moving within impulse subwave C (colored orange red in the chart) of wave 5 of medium term uptrend - colored red in the chart. The targets of the upmove are Fibonacci expansions off 0.9709-0.9876-0.9784, 0.9784-1.0155-1.0064, 1.0065-1.0155-1.0112, 1.0112-1.0228-1.0186.

Resistances:

- 1.0258-59 = confluence area of contracted objective point (COP) and expanded objective point (XOP)
- 1.0293-1.0302 = confluence area of COP and objective point (OP)
- 1.0350 = super expanded objective point (SXOP)

If the price breaks below 1.0186 the immediate supports will be Fibonacci retracements of 1.0064-1.0228, 0.9709-1.0228.

Supports:

- 1.0165 = .382 retracement
- 1.0146 = .50 ret
- 1.0127 = .618 ret
- 1.0030 = .382 ret
- etc.

Overbought/Oversold

Assuming that the medium term trend is up, it's preferable to look for longs when the Detrended Oscillator goes below the zero level (20-30 pips below the current price) or gets into the oversold area (35-45 pips to go).

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