FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for June 29, 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. They formed wave A of larger degree - colored magenta in the chart. Now a corrective wave B is developing against wave A, the targets of this upmove are Fibonacci retracements of 1.0649-1.0390, 1.0774-1.0390, and expansions off 1.0390-1.0479-1.0435.

Resistances:

- 1.0550 = .618 retracement
- 1.0579-89 = confluence area of expanded objective point (XOP) and .50 ret
- 1.0627 = .618

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0390 - 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 (current prices) or gets into the overbought area (20-30 pips above the current prices).

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