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

AUD/USD is moving within corrective wave B of medium term downtrend (colored magenta in the chart). Within this wave there are also A and B subwaves (colored orange red in the chart) with subwave B still developing from 1.0668.

The targets of the upmove are Fibonacci retracements of 1.0771-1.0486, and expansions off 1.0486-1.0668-1.0575.

Resistances:

- 1.0662 = .618 retracement
- 1.0687 = contracted objective point (COP)
- 1.0757 = objective point (OP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9928-1.0771 and expansions off 1.0771-1.0486-1.0668.

Supports:

- 1.0492 = COP
- 1.0449 = .382 ret
- 1.0383 = OP
- 1.0350 = .50 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 (15-20 pips above the current prices) or gets into the overbought area (45-60 pips above the current prices).

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