FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for January 4, 2012

AUD/USD finally broke above 1.0379, and now is developing impulse wave C of a medium term uptrend from 0.9861 (colored light green in the chart). Within this wave there are A, B and C subwaves (colored royal blue in the chart), subwave C is developing from 1.0044. On still smaller levels we have A, B and C subwaves (colored red in the chart), and potential corrective subwave 4 is developing from 1.0386 against the uptrend. The immediate resistances are Fibonacci expansions off 0.9663-1.0379-0.9861, 0.9861-1.0218-1.0044, 1.0044-1.0268-1.0197, 1.0197-1.0386-1.0322.

Resistances:

- 1.0401 = objective point (OP)
- 1.0421 = OP
- 1.0439 = contracted objective point (COP)
- 1.0511 = OP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 1.0197-1.0386.

Supports:

- 1.0314 = .382 retracement
- 1.0292 = .50 ret
- 1.0269 = .618 ret

Overbought/Oversold

Assuming that the larger wave is now moving up, it's preferable to try long positions until the price breaks below 1.0197 and when the Detrended Oscillator goes below the zero level (15-20 pips below the current prices) or into the oversold area (40-55 pips below the current prices), watch for entries long at or near the indicated supports.

Read more on how to trade with Fibonacci levels.