FX.co ★ AUD/USD Elliott Wave Count and Fibonacci levels for March 8, 2012

The AUD/USD pair has finished the wave 0.9861-1.0856 (coral in the chart). Presently the corrective wave B is developing from the point 1.0856. Within this wave we have subwaves A, B, and C (red in the chart). The potential corrective subwave 4 is developing from 1.0509. Within this wave there are also subwaves A, B, and C (orange red in the chart), and subwave C is developing from 1.0533.

The upside targets are Fibonacci retracements of 1.0817-1.0509 and expansions off 1.0509-1.0592-1.0533.

Resistances:

- 1.0616 = objective point (OP)
- 1.0627 = .382 retracement
- 1.0663 = .50 ret
- 1.0667 = expanded objective point (XOP)
- 1.0699 = .618 ret

However, if the downtrend resumes, the immediate supports will be Fibonacci retracements of 0.9861-1.0856 and expansions 1.0856-1.0715-1.0817.

Supports:

- 1.0476 = .382 retracement
- 1.0448 = super expanded objective point (SXOP)
- 1.0358 = .50 ret

Overbought/Oversold

The larger wave is now moving downwards, so it is recommended to open short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (current prices as well). Consider the possibilities of short positions at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.