FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for June 10, 2011

AUD/USD is developing corrective wave against 1.0439-1.0774 - this is wave B of medium term uptrend that is developing now - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 1.0439-1.0774 and expansions off 1.0737-1.0562-1.0652.

Supports:

- 1.0567 = .618 retracement
- 1.0544 = contracted objective point (COP)
- 1.0477 = objective point (OP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.07741.0562 and 1.0737-1.0562.

Resistances:

- 1.0650 = .50 retracement
- 1.0668-70 = confluence area of .50 and .618 retracements
- 1.0693 = .618 ret

Overbought/Oversold

Assuming that the price is developing a corrective wave against the medium term uptrend it's preferable to stand aside or try short positions when the Detrended Oscillator goes above the zero level (30-35 pips above the current prices) or gets into the overbought area (50-70 pips above the current prices).

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