FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - April 4, 2011

AUD/USD is developing impulse subwave C (colored red in the chart) within wave 5 of medium term uptrend - colored magenta in the chart. The targets of the up are Fibonacci expansions off 0.9709-1.0127-1.0064, 1.0064-1.0313-1.0204, and 1.0204-1.0368-1.0310, 1.0310-1.0364-1.0316.

Resistances:

- 1.0411 = contracted objective point (COP)
- 1.0453-57 = confluence area of objective point (OP) and super expanded objective point (SXOP)
- 1.0474-82 = confluence area of two objective points (OP)

If the price keeps declining the immediate supports will be Fibonacci retracements of 1.0310-1.0413.

Supports:

- 1.0374 = .382 retracement
- 1.0361 = .50 ret
- 1.0349 = .618 ret

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 (current prices) or gets into the oversold area (15-20 pips to go) - this rougly corresponds to 1.0374 or 1.0361 Fib supports.

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