FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for July 6, 2011

AUD/USD has developed wave A of medium term uptrend - colored magenta in the chart. And now the pair is developing corrective wave B from 1.0789. Within this wave there are A and B subwaves - colored red in the chart. Subwave B is still developing. Within it there are A, B and C subwaves of still smaller degree - colored yellow. Now the targets of the upmove are Fibonacci expansions off 1.0390-1.0789-1.0664, 1.0664-1.0713-1.0674.

Resistances:

- 1.0753 = expanded objective point (XOP)
- 1.0802 = super expanded objective point (SXOP)
- 1.0911 = contracted objective point (COP)

If the price stalls here or reverses to the downside the immediate supports will be Fibonacci retracements of 1.0390-1.0789 and expansions off 1.0789-1.1.0664-1.0733.

Supports:

- 1.0656 = COP
- 1.0637 = .382 retracement
- 1.0608 = objective point (OP)
- 1.0589 = .50 ret
- 1.0542 = .618 ret
- 1.0531 = XOP

Overbought/Oversold

Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (10-20 pips below the current prices) or gets into the oversold area (30-40 pips below the current prices).

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