FX.co ★ AUD/USD Elliott wave count and Fibonacci levels - April 28, 2011

AUD/USD is now moving in subwave C (colored magenta in the chart) that is part of wave C of larger degree - colored royal blue in the chart. The former subwave C also consists of waves of still smaller degree - A, B and C, subwave C is still developing - colored red in the chart. The immediate resistances are Fibonacci expansions off 0.9709-1.0580-1.0389, 1.0389-1.0578-1.0442, 1.0442-1.0775-1.0676, 1.0676-1.0851-1.0778.

Resistances:

- 1.0927-37 = confluence area of contracted objective point (COP) and super expanded objective point (SXOP)
- 1.0953 = objective point (OP)
- 1.1009 = OP
- 1.1061 = expanded objective point (XOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0778 - this wave is not developed yet.

Overbought/Oversold

Assuming that the medium term trend is up it's preferable to try longs when the Detrended Oscillator goes below the zero level (40-45 pips below the current prices) or gets into the oversold area (60-70 pips below the current prices).

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