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

AUD/USD is now developing wave C of long term downtrend from 1.0649 - colored light green in the chart. Within this wave there's wave C of smaller degree, developing from 1.0600 - colored red in the chart. Now the targets of the downmove are Fibonacci retracements of 0.9707-1.1011, and expansions off 1.0774-1.0477-1.0649, and 1.0649-1.0454-1.0600.

Supports:

- 1.0405 = objective point (OP)
- 1.0359 = .50 retracement
- 1.0352 = OP
- 1.0284 = expanded objectve point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0600 - 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 (20-25 pips above the current prices) or gets into the overbought area (50-60 pips above the current prices).

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