The AUD/USD pair is developing an impulse wave A (light green in the chart) of the medium term downtrend. Within this wave we have two subwaves (royal blue in the chart) and a potential corrective subwave B developing from 0.9689 comprising three subwaves (orange red in the chart) and subwave C developing from 0.9716.
Presently the immediate resistances are Fibonacci retracements of 1.0473-0.9689 and expansions of 0.9689-0.9813-0.9716, 0.9716-0.9798-0.9746.
Resistances:
- 0.9879 = expanded objective point (XOP)
- 0.9917 = XOP
- 0.9961 = super expanded objective point (SXOP)
- 0.9988 = .382 retracement
If the price reverses to the downside, the immediate supports will be Fibonacci retracements of the wave up from 0.9689 - this wave is not developed yet, so supports are not available so far.
Overbought/Oversold
The bigger wave is now moving upwards, so it is preferable to try long positions when the Detrended Oscillator goes below the zero level (15-20 pips below the current prices) or into the oversold area (40-55 pips below the current prices). Consider the opportunities to go long at or near indicated supports.
Read more on how to trade with Fibonacci levels.
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