AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are three subwaves (light green in the chart), subwave C is developing from 1.0636. Within this wave we have A-B-C cycle that is developing now (royal blue in the chart), subwave C started at 1.0465. Within the latter we have two subwaves (magenta in the chart), and potential corrective subwave B is developing from 1.0243. It also contains subwaves A-B-C (red in the chart), and C is developing from 1.0257.
Now the targets above are Fibonacci retracements of 1.0465-1.0243, and expansions off 1.0243-1.0336-1.0257, 1.0257-1.0331-1.0294.
Resistances:
- 1.0350-54 = confluence area of contracted objective point (COP) and .50 retracement
- 1.0368 = objective point (OP)
- 1.0380 = .618 ret
- 1.0407 = expanded objective point (XOP)
- 1.0414 = XOP
The immediate supports are Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0423-1.0636, 1.0636-1.0304-1.0465.
Supports:
- 1.0241 = .618 retracement
- 1.0203 = OP
Overbought/Oversold
The larger wave is now moving down, so it's prefereable to go short when the Detrended Oscillator goes above the zero level (15-20 pips above the current prices) or into the overbought area (35-45 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
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