FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - April 11, 2011

AUD/USD is developing impulse subwave C (colored magenta in the chart) within wave C of larger degree - colored royal blue in the chart. The former wave now has 3 subwaves - colored red in the chart. And subwave C is still developing. The targets of the upmove are Fibonacci expansions off 0.9709-1.0313-1.0204, 1.0204-1.0413-1.0285, 1.0285-1.0504-1.0408, 1.0408-1.0548-1.0513.

Resistances:

- 1.0600 = contracted objective point (COP)
- 1.0623-27 = confluence area of expanded objective point (XOP) and objective point (OP)
- 1.0653 = OP

If the price reverses down the immediate supports will be Fibonacci retracements of 1.0408-1.0579, 1.0285-1.0579.

Supports:

- 1.0514 = .382 retracement
- 1.0497 = .50 ret
- 1.0473-67 = confluence area of .618 and .382 retracements
- 1.0432 = .50 ret
- 1.0397 = .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 (5-10 pips below the current prices) or gets into the oversold area (20-30 pips to go), or when it hits Fib support at 1.0514.

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