FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for July 28, 2011

AUD/USD is moving within wave C of long term uptrend - from 1.0561 (colored light green in the chart). At the moment this wave consists of five 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, 1.0694-1.0873-1.0795, 1.0795-1.1079-1.1002.

Resistances:

- 1.1085 = expanded objective point (XOP)
- 1.1178 = contracted objective point (COP)
- 1.1220 = XOP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0561-1.1079.

Supports:

- 1.0881 = .382 retracement
- 1.0820 = .50 ret
- 1.0759 = .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 (5-15 pips below the current prices) or gets into the oversold area (20-30 pips below the current prices).

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