FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for September 21, 2011

AUD/USD is moving within impulse wave A of medium term downtrend (colored royal blue in the chart) from 1.0748. Within this wave there are also five subwaves (colored magenta in the chart) with subwave 5 still developing from 1.0401.

The targets of the downmove are Fibonacci expansions off 1.0768-1.0486-1.0665, 1.0665-1.0181-1.0401, 1.0401-1.0152-1.0312.

Supports:

- 1.0158 = contracted objective point (COP)
- 1.0102 = COP
- 1.0063 = objective point (OP)
- 0.9927-17-09 = confluence area of super expanded objective point (SXOP), OP, and expanded objective point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0401-1.0152, and 1.0768-1.0152.

Resistances:

- 1.0306 = .618 retracement
- 1.0387 = .382 ret
- 1.0460 = .50 ret
- 1.0533 = .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 (current prices) or gets into the overbought area (15-30 pips above the current prices).

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