Monday, July 11, 2011

AUD/USD Elliott Wave count and Fibonacci levels

AUD/USD has developed wave A of medium term uptrend 1.0390-1.0789 - colored royal blue in the chart. And now corrective wave B is developingfrom 1.0789. Within this wave there are A and B subwaves, colored magenta in the chart. Now the targets of the downmove are Fibonacci retracements of 1.0390-1.0789, and expansions off 1.0789-1.0654-1.0787, 1.0787-1.0704-1.0768.

Supports:

- 1.0685 = objective point (OP)
- 1.0652 = OP
- 1.0637-34 = confluence area of .382 retracement and expanded objective point (XOP)
- 1.0589 = .50 ret
- 1.0569 = XOP
- 1.0551 = super expanded objective point (SXOP)
- 1.0542 = .618 ret

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0787 - this wave is not developed, and expansions off 1.0390-1.0789-1.0654.

Resistances:

- 1.0901 = contracted objective point (COP)




Overbought/Oversold

Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or gets into the oversold area (25-35 pips below the current prices).

Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2011