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AUD/USD is moving within impulse wave 5 (colored orange red in the chart) from 1.0590 that is part of wave A of larger degree (colored royal blue in the chart) from 1.0771. Now the targets of the downmove are Fibonacci retracements of 0.9928-1.0771, 1.0315-1.0771, and expansions off 1.0735-1.0518-1.0590.
Supports:
- 1.0489 = .618 retracement
- 1.0456-49 = confluence area of contracted objective point (COP) and .382 ret
- 1.0373 = objective point (OP)
- 1.0350 = .50 ret
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0771-1.0504.
Resistances:
- 1.0606 = .382 ret
- 1.0638 = .50 ret
- 1.0669 = .618 ret
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (10-15 pips above the current prices) or gets into the overbought area (25-35 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
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