FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for June 14, 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. Within this wave there are A-B and C subwaves - colored magenta in the chart. The whole downmove from 1.0774 will be over when the price breaks above 1.0652. The targets of the downmove are Fibonacci expansions off 1.0774-1.0562-1.0652.

Supports:

- 1.0521 = contracted objective point (COP)
- 1.0440 = objective point (OP)

If the price keeps moving up the immediate resistances will be Fibonacci retracements of 1.0774-1.0523, and expansions off 1.0523-1.0637-1.0568.

Resistances:

- 1.0638-48 = confluence area of .50 retracement and contracted objective point (COP)
- 1.0678 = .618 ret
- 1.0682 = objective point (OP)
- 1.0752 = expanded objective point (XOP)

Overbought/Oversold

Assuming that the corrective downwave may be over it's preferable to try long positions when the Detrended Oscillator goes below the zero level (20-25 pips below the current prices) or gets into the oversold area (45-55 pips above the current prices).

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