AUD/USD has reversed for a correction of impulse wave C of medium term uptrend (colored magenta in the chart) that started from 1.0427. This wave, however, is part of impulse wave C of a larger degree (colored royal blue in the chart) that started from 1.0231.
As far as the corrective move goes, its targets are Fibonacci retracements of 1.0231-1.0687, 1.0427-1.0687, and expansions off 1.0687-1.0591-1.0669, 1.0669-1.0596-1.0666.
Supports:
- 1.0557 = .50 retracement
- 1.0548 = expanded objective point (XOP)
- 1.0526 = .618 ret
- 1.0514-13 = confluence area of .382 ret andXOP
- 1.0475 = super expanded objective point (SXOP)
- 1.0548 = expanded objective point (XOP)
- 1.0526 = .618 ret
- 1.0514-13 = confluence area of .382 ret andXOP
- 1.0475 = super expanded objective point (SXOP)
However if the price breaks above 1.0687 to continue the uptrend we'll calculate the resistances using Fibonacci expansions off 1.0145-1.0377-1.0231, 1.0231-1.0573-1.0427.
Resistances:
- 1.0769 = objective point (OP)
- 1.0838 = SXOP
- 1.0838 = SXOP
Overbought/Oversold
The larger wave is still moving up, so it's prefereable to open longs when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (15-30 pips below the current prices).
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