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.

- 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.


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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