FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - April 5, 2011

AUD/USD is developing impulse subwave C (colored yellow in the chart) within wave A of potential corrective A-B-C cycle against the medium term uptrend - colored magenta in the chart. The targets of the downmove are Fibonacci retracements of 1.0204-1.0413, expansions off 1.0413-1.0332-1.0369.

Supports:

- 1.0319 = contracted objective point (COP)
- 1.0309 = .50 retracement
- 1.0288-84 = confluence area of objective point (OP) and .618 ret
- 1.0238 = expanded objective point (XOP)

If the uptrend resumes the immediate resistances will be Fibonacci expansions off 0.9709-1.0127-1.0064, 1.0064-1.0313-1.0204.

Resistances:

- 1.0453 = objective point (OP)
- 1.0482 = OP

Overbought/Oversold

Assuming that the medium term may be reversing to the downside, it's preferable to look for shorts when the Detrended Oscillator goes above the zero level (20-25 pips above the current price) or gets into the overbought area (35-50 pips to go).

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