FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for June 28, 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 are A, B and C waves that are completed - colored red in the chart. Now a corrective wave coming against subwave C, the targets of this upmove are Fibonacci retracements of 1.0600-1.0390.

Resistances:

- 1.0470 = .382 retracement (already achieved)
- 1.0495 = .50 ret
- 1.0520 = .618 ret

If the price keeps moving down the immediate supports will be Fibonacci retracements of 0.9707-1.1011, and expansions off 1.0774-1.0477-1.0649, and 1.0649-1.0454-1.0600.

Supports:

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

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 (10-15 pips above the current prices) or gets into the overbought area (35-45 pips above the current prices).

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