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

AUD/USD is moving within wave 5 (from 1.0784) of medium term downtrend - colored red in the chart. These five waves are part of wave C of larger degree from 1.1063 (colored magenta in the chart).

The targets of the downmove are Fibonacci retracements of 0.8066-1.1079, 0.9707-1.1079, and expansions off 1.1063-1.0679-1.0784, 1.0784-1.0375-1.0522.

Supports:

- 1.0269 = contracted objective point (COP)
- 1.0231 = .618 retracement
- 1.0163 = expnded objective point (XOP)
- 1.0113 = objective point (OP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.1063 - this wave is not developed yet, so no resistances are available so far.

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 (70-80 pips above the current prices) or gets into the overbought area (100-120 pips above the current prices).

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