FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for August 24, 2011

AUD/USD is moving within potential wave C (from 1.0600) of medium term downtrend - colored royal blue in the chart. Within wave C there are A and B subwaves (colored magenta in the chart) with subwave B still developing from 1.0315. The targets of the downmove are Fibonacci retracements of 0.9928-1.0600, 1.0111-1.0600, and expansions off 1.1079-0.9928-1.0600.

Supports:

- 1.0398 = .618 retracement
- 1.0264 = .50 ret
- 1.0185 = .618 ret

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.1079-0.9928, and expansions off 0.9928-1.0600-1.0315, 1.0315-1.049-1.0363, 1.0363-1.0521-1.0445.

Resistances:

- 1.0543 = contracted objective point (COP)
- 1.0603 = objective point (OP)
- 1.0628 = expanded objective point (XOP)
- 1.0639 = .618 ret

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 (5-15 pips above the current prices) or gets into the overbought area (35-45 pips above the current prices).

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