FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 29, 2011

The AUD/USD is moving within corrective wave 4 of medium term uptrend - colored magenta in the chart. The targets of the dowmove are fibonacci retracements of 0.9709-1.0313, 1.0064-1.0313.

Supports:

- 1.0218 = .382 retracement
- 1.0189 = .50 ret
- 1.0159 = .618 ret
- 1.0082 = .382 ret
- etc.

If the price keeps advancing the immediate resistances will be Fibonacci retracements of 1.0313-1.0224, and expansions off 0.9709-1.0127-1.0064, 1.0064-1.0313-1.0224.

Resistances:

- 1.0258 = .382 ret
- 1.0269 = .50 ret
- 1.0279 = .618 ret
- 1.0322 = contracted objective point (COP)
- 1.0378 = COP

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 (15-20 pips below the current price) or gets into the oversold area (25-35 pips to go).

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