Monday, July 18, 2011

AUD/USD Elliott Wave count and Fibonacci levels

AUD/USD has finished wave 1.0390-1.0797 (wave A of long term uptrend - colored light green in the chart) and now is developing potential corrective wave B of the same degree from 1.0797. Within this wave there are 5 subwaves (colored orange red in the chart).

Now the targets of the downmove are Fibonacci retracements of 1.0390-1.0797 and expansions off 1.0797-1.0715-1.0784, 1.0784-1.0629-1.0674.

Supports:
- 1.0594 = .50 retracement
- 1.0578-69 = confluence area of contracted objective point (COP) and super expanded objective point (SXOP)
- 1.0545 = .618 ret
- 1.0519 = objective point (OP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 1.0797 - this wave is not developed yet, so no resistances are available so far.


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 (5-10 pips above the current prices) or gets into the overbought area (25-35 pips above the current prices).

Performed by Roman Molodiashin, Analytical expert
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