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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 magenta 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, 1.0224-1.0029-1.0161.
Supports:
- 0.9966 = objective point (OP)
- 0.9937 = .618 retracement
- 0.9893 = objective point (OP)
- 0.9845 = expanded objective point (XOP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0379-0.9979.
Resistances:
- 1.0132 = .382 ret
- 1.0179 = .50 ret
- 1.0226 = .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 (20-35 pips above the current prices), watch for entries short at the specified resistances.
Read more on how to apply Fibonacci studies to calculate price targets.
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