FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for October 27, 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 also three subwaves of still smaller degree (colored magenta in the chart), with subwave C still developing from 1.0321. The targets above the current price are Fibonacci expansions off 0.9387-1.0371-1.0117, 1.0117-1.0500-1.0321.

Resistances:

- 1.0558 = contracted objective point (COP)
- 1.0704 = objective point (OP)
- 1.0725 = COP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0321 - this wave is not developed yet, so no supports are available so far.

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 (60-70 pips below the current prices) or gets into the oversold area (90-110 pips below the current prices).

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