Wednesday, July 20, 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 magenta in the chart). If the price breaks above 1.0797, we'll have wave C of long term uptrend developing from 1.0561.

Now the targets of the upmove are Fibonacci expansions off 1.0390-1.0797-1.0561, and 1.0561-1.0650-1.0608.

Resistances:
- 1.0813 = contracted objective point (COP)
- 1.0841 = super expanded objective point (SXOP)
- 1.0968 = objective point (OP)

If the price continues the downmove the immediate supports will be Fibonacci retracements of 1.0390-1.0797, 1.0561-1.0748, and expansions off 1.0797-1.0561-1.0748.

Supports:
- 1.0677 = .382 ret
- 1.0655 = .50 ret
- 1.0632 = .618 ret
- 1.0602 = COP
- 1.0545 = .618 ret
- 1.0512 = OP


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 oversold area (20-35 pips below the current prices).

Performed by Roman Molodiashin, Analytical expert
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