FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for July 8, 2011

AUD/USD has developed wave B of medium term uptrend 1.0789-1.0654 - colored magenta in the chart. And now the pair is developing impulse wave C from 1.0654. Within this wave there are five subwaves - colored yellow in the chart. Now the targets of the upmove are Fibonacci expansions off 1.0390-1.0789-1.0654, 1.0654-1.0698-1.0670, 1.0670-1.0759-1.0720.

Resistances:

- 1.0785 = super expanded objective point (SXOP)
- 1.0809 = objective point (OP)
- 1.0864 = expanded objective point (XOP)
- 1.0901 = contracted objective point (COP)

If the price stalls here and reverses to the downside the immediate supports will be Fibonacci retracements of 1.0390-1.0789, 1.0654-1.0779 and expansions off 1.0789-1.1.0654-1.0779.

Supports:

- 1.0731 = .382 retracement
- 1.0717 = .50 ret
- 1.0702 = .618 ret
- 1.0644 = OP
- 1.0637 = .382 retracement
- 1.0589 = .50 ret
- 1.0661 = 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 (5-10 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.