FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for June 16, 2011

AUD/USD is now developing potential wave C of medium term downtrend - colored royal blue in the chart. To confirm that, break below 1.0523 is needed (top of wave A). The targets of the downmove are Fibonacci retracements of 0.9707-1.1011, and expansions off 1.0774-1.0523-1.0714, 1.0714-1.0535-1.0590.

Supports:

- 1.0513 = .382 retracement
- 1.0479 = contracted objective point (COP)
- 1.0463 = objective point (OP)
- 1.0411 = OP
- 1.0359 = .50 ret

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0714 - this wave is not developed yet.

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 (30-35 pips above the current prices) or gets into the overbought area (50-65 pips above the current prices).

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