Tuesday, July 26, 2011

AUD/USD Elliott Wave count and Fibonacci levels - 26 July 2011

AUD/USD is moving within wave C of long term uptrend - from 1.0561 (colored light green in the chart). At the moment this wave consists of five subwaves - colored red in the chart. Subwave 5 is still developing from 1.0795. There are A, B and C waves of still smaller degree in subwave 5. Subwave C is developing from 1.0821 (colored yellow in the chart).

The targets of the upmove are Fibonacci expansions off 1.0390-1.0797-1.0561, 1.0561-1.0772-1.0694, 1.0694-1.0873-1.0795, 1.0795-1.0875-1.0821.

Resistances:

- 1.0905-06 = confluence area of objective point (OP) and contracted objective point (COP)
- 1.0950 = expanded objective point (XOP)
- 1.0968 = OP
- 1.0974 = OP
- 1.1030-35 = confluence area of super expanded objective point (SXOP) and XOP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0561 - this wave is not developed yet, therefore no support are available so far.


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 (50-60 pips below the current prices) or gets into the oversold area (70-80 pips below the current prices).

Performed by Roman Molodiashin, Analytical expert
InstaForex Companies Group © 2007-2011