FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - April 22, 2011

AUD/USD is developing subwave C (colored royal blue in the chart) within impulse wave C of medium term uptrend - colored light green in the chart. The former subwave also has waves of smaller degree - colored orange red in the chart, subwave B is still developing. The immediate supports are Fibonacci retracements of 1.0442-1.0774, 1.0648-1.0774, and expansions off 1.0774-1.0726-1.0755.

Supports:

- 1.0711-07 = confluence area of .50 retracement and objective point (OP)
- 1.0697 = .618 ret
- 1.0677 = expanded objective point (XOP)
- 1.0647 = .382 ret
- 1.0629 = super expanded objective point (SXOP)
- 1.0608 = .50 ret
- 1.0659 = .618 ret

If the price breaks above 1.0774 to continue the uptrend the immediate resistances will be Fibonacci expansions off 0.9709-1.0580-1.0389, 1.0389-1.0578-1.0442.

Resistances:

- 1.0927-37 = confluence area of COP and SXOP

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 (current prices as well).

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