FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for October 26, 2011

AUD/USD is developing wave A of medium term uptrend (colored light green in the chart). Within this wave there are A, B and C subwaves (colored royal blue in the chart), and subwave C is developing from 1.0117. Within the latter wave C there are 4 subwaves (colored red in the chart) with subwave 4 still developing from 1.0500. The targets above the current price are Fibonacci expansions off 0.9387-1.0371-1.0117, 1.0117-1.0353-1.0146.

Resistances:

- 1.0528 = expanded objective point (XOP)
- 1.0725 = contracted objective point (COP)
- 1.0764 = super expanded objective point (SXOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0146-1.0500, and expansions off 1.0500-1.0396-1.0481.

Supports:

- 1.0323 = .50 ret
- 1.0313 = XOP
- 1.0281 = .618 ret
- 1.0209 = SXOP

Overbought/Oversold

Assuming that the larger wave is now moving up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (5-10 pips below the current prices) or gets into the oversold area (20-30 pips below the current prices).

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