FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for July 22, 2011

AUD/USD has finished wave 1.0797-1.0561 (wave B of long term uptrend - colored light green in the chart) and now is developing wave C from 1.0561. Within the larger wave C there are A, B and C subwaves (colored red in the chart). The targets of the upmove are Fibonacci expansions off 1.0390-1.0797-1.0561, 1.0561-1.0772-1.0694.

Resistances:

- 1.0905 = objective point (OP)
- 1.0968 = OP
- 1.1035 = expanded objective point (XOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0561-1.0855.

Supports:

- 1.0743 = .382 retracement
- 1.0708 = .50 ret
- 1.0673 = .618 ret

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 (25-35 pips below the current prices).

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