Wave analysis
Roman Molodiashin
AUD/USD broke above 1.0218 and is developing potential wave C of medium term uptrend from 0.9861 (colored light green in the chart), this wave will be confirmed when the price breaks above 1.0379. On smaller timeframes this wave has three subwaves - A, B and C (colored royal blue in the chart), and subwave C is still developing from 1.0044. The tragets of the upmove are Fibonacci expansions off 0.9663-1.0379-0.9861, 0.9861-1.0218-1.0044.
Resistances:
- 1.0265 = contracted objective point (COP)
- 1.0303 = COP
- 1.0401 = objective point (OP)
If the price continues its decline the immediate supports will be Fibonacci retracements of 1.0044-1.0268.
Supports:
- 1.0182 = .382 retracement
- 1.0145 = .50 ret
- 1.0130 = .618 ret
Overbought/Oversold
Assuming that the larger wave is now moving up, it's preferable to try long positions until the price breaks below 1.0138 and when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (20-30 pips below the current prices), watch for entries long at or near the indicated supports.
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