Tuesday, July 19, 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 A and B subwaves (colored red in the chart).

Now the targets of the upmove are Fibonacci retracements of 1.0797-1.0561, and expansions off 1.0390-1.0797-1.0561.

Resistances:
- 1.0651 = .382 retracement
- 1.0679 = .50 ret
- 1.0707 = .618 ret
- 1.0813 = contracted objective point (COP)

If the price continues the downwave the immediate supports will be Fibonacci retracements of 1.0390-1.0797 and expansions off 1.0797-1.0561-1.0650.

Supports:
- 1.0545 = .618 ret
- 1.0504 = COP
- 1.0414 = objective point (OP)




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 (15-25 pips above the current prices).


Performed by Roman Molodiashin, Analytical expert
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