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

AUD/USD is developing potential impulse wave C of medium term downtrend (colored light green in the chart) from 1.0379. Within this wave there are two subwaves (colored magenta in the chart) with corrective subwave B still developing from 0.9861. The latter also has its subwaves - A, B, and C (colored red in the chart), with C developing from 0.9883. The targets of the upmove are Fibonacci retracements of 1.0379-0.9861, and expansions off 0.9861-1.0027-0.9883, 0.9883-1.0094-1.0053.

Resistances:

- 1.0152 = expanded objective point (XOP)
- 1.0181-83 = confluence area of .618 retracement and contracted objective point (COP)
- 1.0264-68 = confluence area of objective point (OP) and .786 ret

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 0.9883 - 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 (20-30 pips below the current prices) or gets into the oversold area (60-80 pips below the current prices), watch for entries long at the specified supports.

Read more on how to trade with Fibonacci levels.