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AUD/USD is developing wave A of medium term downtrend (colored royal blue in the chart). Within this wave there are A, B and C subwaves (colored magenta in the chart), and subwave C is still developing from 1.0445. On still smaller scale there are three waves within the latter C - colored red in the chart - and impulse subwave C is still developing from 1.0403. The targets below the current price are Fibonacci retracements of 0.9387-1.0752, and expansions off 1.0752-1.0202-1.0445, 1.0445-1.0275-1.0403.
Supports:
- 1.0105 = contracted objective point (COP)
- 1.0070 = .50 retracement
- 0.9958 = super expanded objective point (SXOP)
- 0.9908 = .618 ret
- 0.9895 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0403-1.0106.
Resistances:
- 1.0219 = .382 ret
- 1.0255 = .50 ret
- 1.0290 = .618 ret
Overbought/Oversold
Assuming that the larger wave is now moving down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or gets into the overbought area (50-70 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
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