FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for January 9, 2012

AUD/USD is developing impulse wave A of medium term downtrend from 1.0386 (colored light green in the chart). Within this wave we have 5 subwaves (colored orange red in the chart) with subwave 5 developing from 1.0273. Now the targets of the downmove are calculated using Fibonacci expansions off 1.0386-1.0304-1.0372 (subwaves 1 and 2), 1.0372-1.0205-1.0273 (subwaves 3-4), 1.0273-1.0201-1.0242 (subwaves A and B within wave 5).

Supports:

- 1.0157 = super expanded objective point (SXOP)
- 1.0126 = expanded objective point (XOP)
- 1.0106 = objective point (OP)
- 1.0054 = SXOP
- 1.0003 = XOP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0386 - this wave is not developed yet, so no resistances are available so far.

Overbought/Oversold

The larger wave is now moving down, therefore it's preferable to try short positions until the price breaks above 1.0242 and when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (20-35 pips above the current prices), watch for entries short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.