FX.co ★ AUD/USD Elliott Wave Count and Fibonacci Levels for April 23, 2012

The AUD/USD pair is developing a potential impulse wave C of the medium term uptrend (coral in the chart) from 1.0226. Inside this wave we have three subwaves (royal blue in the chart) and a potential impulse subwave C developing from 1.0304 comprising three subwaves (magenta in the chart), and a potential impulse subwave C developing from 1.0309.

Now the immediate resistances are Fibonacci retracements of 1.0636-1.0226 and expansions of 1.0226-1.0451-1.0304, 1.0304-1.0417-1.0309.

Resistances:

- 1.0422 = objective point (OP)
- 1.0443 = contracted objective point (COP)
- 1.0479 = .618 ret
- 1.0479 = expanded objective point (XOP)

The downside targets are Fibonacci expansions of 1.0451-1.0304-1.0417, 1.0417-1.0309-1.0383.

Supports:

- 1.0316 = COP
- 1.0275-70 = confluence area of two OP's
- 1.0208 = XOP
- 1.0179 = XOP

Overbought/Oversold

The larger wave is now moving upwards, so it is prefereable to go long when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (10-20 pips below the current prices). Consider the possibilities to go long at or near the indicated supports.

Read more on how to trade with Fibonacci levels.