FX.co ★ AUD/USD Elliott Wave Count and Fibonacci Levels for April 16, 2012

The AUD/USD pair is developing the potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are four subwaves (light green in the chart); and potential corrective subwave 4 is developing from 1.0226. Within this wave we have A and B subwaves (red in the chart); a subwave B is moving from 1.0451.

The immediate supports are Fibonacci retracements of 1.0226-1.0451 and expansions 1.0856-1.0423-1.0636, 1.0636-1.0226-1.0451, 1.0451-1.0369-1.0426, 1.0426-1.0355-1.0385.

Supports:

- 1.0314-12 = confluence area of objective point (OP) and .618 retracement
- 1.0293 = expanded objective point (XOP)
- 1.0270 = XOP

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0636-1.0226 and of the wave down from 1.0451 (not yet developed).

Resistances:

- 1.0479 = .618 retracement

Overbought/Oversold

The larger wave is now moving down, so it is better to go short when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (25-40 pips above the current prices). Watch for possibilities to go short at or near the indicated supports.

Read more on how to trade with Fibonacci levels.