Friday, July 15, 2011

AUD/USD Elliott Wave count and Fibonacci levels

AUD/USD has finished corrective wave B from 1.0789 and now we have impulse wave C (colored royal blue in the chart) of medium term uptrend developing from 1.0526. Within this wave there are minor A and B waves - colored red in the chart. Subwave B is still developing. The targets of the downmove are Fibonacci retracements of 1.0526-1.0797, 0.9709-1.1011 and 1.0390-1.0797, and also expansions off 1.0797-1.0715-1.0784.

Supports:
- 1.0702 = objective point (OP), already reached (!)
- 1.0693 = .382 retracement
- 1.0661 = .50 ret
- 1.0651 = expanded objective point (XOP)
- 1.0642-30 = confluence area of .382 ret and .618 ret
- 1.0594 = .50 ret
- 1.0569 = super expanded objective point (SXOP)
- 1.0545 = .618 ret
- 1.0360 = .50 ret

If the price continues the uptrend the immediate resistances will be Fibonacci expansions off 1.0390-1.0789-1.0526.

Resistance:
- 1.0925 = 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 overbought area (20-30 pips below the current prices).
 
Performed by Roman Molodiashin, Analytical expert
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