FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for August 18, 2011

AUD/USD is moving within wave B (from 1.0928) of medium term downtrend - colored royal blue in the chart. The targets of the upmove are Fibonacci retracements of 1.1079-0.9928, and expansions off 0.9928-1.0414-1.0111, 1.0111-1.0511-1.0406.

Resistances:

- 1.0639-53 = confluence area of .618 ret and contracted objective point (COP)
- 1.0806 = OP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9928-1.0600.

Supports:

- 1.0343 = .382 ret
- 1.0264 = .50 ret
- 1.0185 = .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 (current prices) or gets into the oversold area (current prices).

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