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AUD/USD is developing potential impulse wave C of medium term downtrend (colored light green in the chart) from 1.0379. Within this wave there are three subwaves (colored red in the chart) with impulse subwave C still developing from 1.0224. The targets of the downmove are Fibonacci retracements of 0.9663-1.0379, and expansions off 1.0379-1.0048-1.0224.
Supports:
- 1.0021-19 = confluence area of .50 ret and COP
- 0.9937 = .618 ret
- 0.9893 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0379 - this wave is not developed so no resistances are available so far.
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 (10-30 pips above the current prices), watch for short entries at the specified resistances.
Read more on how to apply Fibonacci studies to calculate price targets.
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