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 (royal blue in the chart), that may form A-B-C cycle, and corrective wave A (of new cycle) is developing against the downtrend from 1.0304. Within this wave we have subwaves A, B, and C (red in the chart) that is developing from 1.0366. Now the targets of the upmove are Fibonacci retracements of 1.0856-1.0304, 1.0636-1.0304, and expansions off 1.0304-1.0453-1.0366.
Resistances:
- 1.0470 = .50 retracement
- 1.0509-15 = confluence area of .618 ret, .382 ret and objective point (OP)
- 1.0580 = .50 ret
- 1.0607 = expanded objective point (XOP)
If the downtrend resumes the immediate supports will be Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0423-1.0636.
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 (25-30 pips above the current prices) or into the overbought area (55-70 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
Read more on how to trade with Fibonacci levels.
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