AUD/USD is developing impulse wave 5 of medium term uptrend (colored royal blue in the chart) from 1.0525. Now this wave has subwaves A and B, with subwave B still developing from 1.0844 (colored magenta in the chart). Within the latter there are A, B, and C subwaves (colored orange red in the chart) with subwave C still developing from 1.0824.
The targets below are Fibonacci retracements of 1.0525-1.0844 (subwave A within wave 5), and expansions off 1.0844-1.0739-1.0824 (subwaves A and B within B).
Supports:
- 1.0684 = .50 ret
- 1.0654-47 = confluence area of expanded objective point (XOP) and .618 ret
- 1.0549 = super expanded objective point (SXOP)
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of the wave down from 1.0844 - this wave is not developed yet, so no resistances are available so far.
Overbought/Oversold
The larger wave is now moving up, so it's prefereable to open long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (10-25 pips below the current prices), watch for possibilities of going long at or near the indicated supports.
Read more on how to trade with Fibonacci levels.