FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for September 14, 2011

AUD/USD is moving within impulse wave C of medium term downtrend (colored magenta in the chart) from 1.0668. Within this wave there are also A, B and РЎ subwaves (colored red in the chart) with subwave РЎ still developing from 1.0379.

The targets of the downmove are Fibonacci expansions off 1.0768-1.0486-1.0665, 1.0665-1.0259-1.0379, 1.0379-1.0266-1.0374.

Supports:

- 1.0209-1.0191 = confluence area of two expanded objective points (XOP)
- 1.0128 = contracted objective point (COP)
- 1.0078 = super expanded objective point (SXOP)
- 0.9973 = objective point (OP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0665 - 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 (50-60 pips above the current prices) or gets into the overbought area (80-90 pips above the current prices).

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