FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for December 23, 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). Potential corrective subwave 4 is finished and potential impulse wave 5 is developing from 1.0051. 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, 1.0051-1.0144-1.0095.

Resistances:

- 1.0188 = objective point (OP)
- 1.0245 = expanded objective point (XOP)
- 1.0258-68 = confluence area of contracted objective point (COP) and .786 retracement
- 1.0318 = super expanded objective point (SXOP)
- 1.0338 = SXOP
- 1.0386 = 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 (5-10 pips below the current prices) or gets into the oversold area (40-55 pips below the current prices), watch for entries long at the specified supports.

Read more on how to trade with Fibonacci levels.