FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 28, 2011

The AUD/USD has developed five subwaves (colored orange red in the chart) within wave 5 of medium term uptrend - colored red in the chart. The targets of the upmove are Fibonacci expansions off 0.9784-1.0155-1.0064, 1.0064-1.0155-1.0112, 1.0112-1.0228-1.0186, 1.0186-1.0293-1.0233.

Resistances:

- 1.0293-99-1.0302 = confluence area of two contracted objective points (COP) and objective point (OP), already hit
- 1.0340-50 = confluence area of OP and super expanded objective point (SXOP)
- 1.0374 = expanded objective point (XOP)
- 1.0406 = XOP
- 1.0435 = OP

If the price keeps declining the immediate supports will be Fibonacci retracements of 1.0064-1.0293, 1.0186-1.0293.

Supports:

- 1.0252 = .382 retracement
- 1.0240 = .50 ret
- 1.0227 = .618 ret
- 1.0206 = .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 (5-15 pips below the current price - this rougly corresponds to 1.0252-40 Fib support area) or gets into the oversold area (20-30 pips to go - this rougly corresponds to 1.0240-27 Fib support area).

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