FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - March 30, 2011

The AUD/USD is developing wave 5 of medium term uptrend - colored magenta in the chart. This wave on smaller scale consists of A-B-C subwaves, with subwave C still developing - colored yellow. The targets of the upmove are Fibonacci expansions off 0.9709-1.0127-1.0064, 1.0064-1.0313-1.0204, 1.0204-1.0316-1.0269.

Resistances:

- 1.0338 = contracted objective point (COP)
- 1.0358 = COP
- 1.0381 = objective point (OP)
- 1.0450-53 = confluence area of expanded objective point (XOP) and OP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0204 - this wave is not developed yet.

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 (25-35 pips below the current price) or gets into the oversold area (40-50 pips to go).

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