AUD/USD has confirmed weekly wave 5 by breaking above 1.0002. Now, within this wave there’s a set of 4 subwaves (colored red) with corrective wave 4 developing.
The targets of the corrective downmove are Fibonacci retracements of 0.9678-1.0022, 0.9833-1.0022.
Supports:
– 0.9950 = .382 retracement
– 0.9928 = .50 ret
– 0.9905 = .618 ret
– 0.9891 = .382 ret
– 0.9850 = .50 ret
– 0.9809 = .618 ret
In case the price breaks above 1.0022 the nearest resistance will be the expansion off 0.9651-0.9819-0.9678.Resistance:- 1.0118 = super expanded objective point (SXOP)
Overbought/Oversold
The Detrended Oscillator is oscillating around the zero level confirming the corrective downwave. Assuming that the medium term trend is up it’s preferable to seek for bottoming signals to enter long when the price hits a Fibonacci support or gets closer to the oversold area – 15-20 pips to go.
More analysis at instaforex.com