FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for May 26, 2011

AUD/USD is developing subwave C (colored royal blue in the chart) within wave C of long term downtrend - colored light green in the chart. Now we have a corrective subwave B within the former subwave - colored magenta in the chart.

The targets of the upmove are Fibonacci retracements of 1.0710-1.0439 and expansions off 1.0439-1.0550-1.0507.

Resistances:

- 1.0606 = .618 retracement
- 1.0618 = objective point (OP)
- 1.0687 = expanded objective point (XOP)

If the downtrend resumes the immediate supports will be Fibonacci expansions off 1.1011-1.0536-1.0888, 1.0888-1.0504-1.0710.

Supports:

- 1.0413 = objective point (OP)
- 1.0360 = .50 ret
- 1.0326 = OP

Overbought/Oversold

Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or gets into the overbought area (10-25 pips above the current prices).

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