FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for December 22, 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), and potential corrective subwave 4 is developing from 1.0218. The targets of the upmove are Fibonacci retracements of 1.0379-0.9861, and expansions off 0.9861-1.0027-0.9883, 0.9883-1.0218-1.0051.

Resistances:

- 1.0258-68 = confluence area of contracted objective point (COP) and .786 retracement
- 1.0318 = super expanded objective point (SXOP)
- 1.0386 = objective point (OP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9883-1.0218, and expansions off 1.0379-0.9861-1.0218.

Supports:

- 1.0051 = .50 ret
- 1.0011 = .618 ret
- 0.9955 = .786 ret
- 0.9898 = COP

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 (current prices) or gets into the oversold area (35-45 pips below the current prices), watch for entries long at the specified supports.

Read more on how to trade with Fibonacci levels.