FX.co ★ AUD/USD Elliott Wave Count and Fibonacci levels for March 5, 2012

The AUD/USD pair is now trading within the impulse wave C of medium term uptrend from 1.0597 (light green in the chart). Within this wave we have the subwaves A and B (royal blue in the chart). The subwave B is still developing from 1.0856. The latter, by the way, comprises three subwaves (colored red in the chart), with impulse subwave C still developing from 1.0817.

Presently the downside targets correspond to the Fibonacci retracements 1.0597-1.0856, and expansions 1.0856-1.0715-1.0817.

Support:

- 1.0696 = .618 retracement
- 1.0676 = OP
- 1.0589 = XOP

If the price reverses to the upside, the immediate resistances will be euqal to the Fibonacci retracements of the wave down from 1.0817. As this wave is not completed yet, resistances are not available.

Overbought/Oversold

The larger wave is now moving up, so long positions are recommended, when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (10-20 pips below the current prices). It is necessary to consider the possibilitiesof long positions at or near the indicated supports.

Read more on how to trade with Fibonacci levels.