14.10.201111:22 Forex Analysis & Reviews: AUD/USD Elliott wave count and Fibonacci levels for October 14, 2011

AUD/USD is developing wave A of medium term uptrend (colored light green in the chart). Within this wave there are A, B and C subwaves (colored magenta in the chart), with subwave C still developing from 0.9865. The targets of the upmove are Fibonacci retracements of 0.987-1.0014, and expansions off 0.9387-1.0014-0.9865, 0.9865-1.0231-1.0101.

Resistances:

- 1.0240-52 = confluence area of .618 retracement and contracted objective point (COP)
- 1.0327 = COP
- 1.0467 = objective point (OP)
- 1.0492 = OP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9865-1.0231, 0.9387-1.0231.

Supports:

- 1.0091 = .382 ret
- 1.0048 = .50 ret
- 1.0005 = .618 ret
- 0.9909 = .382 ret
- 0.9809 = .50 ret
- 0.9709 = .618 ret

Overbought/Oversold

Assuming that the larger wave is now moving up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (10-15 pips below the current prices) or gets into the oversold area (40-55 pips below the current prices).

Read more on how to apply Fibonacci studies to calculate price targets.