FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for May 27, 2011

AUD/USD has developed wave 1.1011-1.0439 - according to wave count this was corrective wave B of long term uptrend. And now this currency pair stands in the beginning of potential impulse wave C - colored plum in the chart. The targets above the current price level are Fibonacci retracements of 1.1011-1.0439, 1.0888-1.0439, and Fibonacci expansions off 1.0439-1.0624-1.0566, 1.0566-1.0648-1.0607.

Resistances:

- 1.0716-25 = confluence area of .618 and .50 retracements
- 1.0740 = expanded objective point (XOP)
- 1.0751 = objective point (OP)
- 1.0792 = .618 ret

If the price reverses down the immediate supports will be Fibonacci retracements of the waves up from 1.0566 and from 1.0439 - these waves are not developed yet.

Overbought/Oversold

Assuming that the long term and medium term trends are up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (60-70 pips below the current prices) or gets into the oversold area (90-110 pips below the current prices).

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