AUD/USD has developed waves A-B (0.9539-0.9967-0.9755) of medium term uptrend – colored red in the chart – and is not developing wave C. This wave consists of subwaves A-B-C with subwave C still developing – colored red in the chart.
The targets of the upmove are Fibonacci expansions off 0.9539-0.9967-0.9755, 0.9755-0.9899-0.9834.
Resistances:
– 1.0020 = contracted objective point (COP)
– 1.0067 = expanded objective point (XOP)
If the price reverses down to further correct subwave C the targets of the downmove will be Fibonacci retracements of 0.9834-0.9987.
Supports:
– 0.9929 = .382 retracement
– 0.9910 = .50 retracement
– 0.9892 = .618 retracement
Overbought/Oversold
Assuming that the pair is moving in a strong uptrend we can use oversold readings of the Detrended Oscillator in conjunction with Fib supports. The OS is 20-30 pips away and the nearest Fib supports that correspond to this area are 0.9929 (.382 ret) and 0.9910 (.50 – a bit farther). So these are basically the areas to be ready to enter long.
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