Wednesday, July 13, 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 developing from 1.0789. 

Within this wave there are A, B and C subwaves, colored magenta in the chart. Within the magenta wave C there are subwaves of still smaller degree - colored red (A and B) and yellow in the chart (A, B and C). 

Now the targets of the upmvove are Fibonacci retracements of 1.0787-1.0526, and expansions off 1.0526-1.0639-1.0579.

Resistances:

- 1.0649-57 = confluence area of contracted objective point (COP) and .50 retracement
- 1.0687-92 = confluence area of .618 ret and objective point (OP)
- 1.0762 = expanded objective point (XOP) 

If the price reverses and goes down the immediate supports will be Fibonacci expansions off 1.0789-1.0654-1.0787, and retracements of 0.9709-1.1011.

Supports:

- 1.0514 = .382 ret
- 1.0434 = super expanded objective point (SXOP)
- 1.0360 = .50 ret




Overbought/Oversold

Assuming that the medium term trend is 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 (10-20 pips above the current prices).


Performed by Roman Molodiashin, Analytical expert
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