FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for September 9, 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 red in the chart) with subwave B still developing from 1.0668.

The targets of the upmove are Fibonacci expansions off 1.0486-1.0668-1.0570.

Resistances:

- 1.0682 = contracted objective point (COP)
- 1.0752 = objective point (OP)
- 1.0864 = expanded objective point (XOP)

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

Supports:

- 1.0556 = .618 ret
- 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 (current prices) or gets into the overbought area (25-40 pips above the current prices).

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