Wednesday, July 27, 2011

AUD/USD Elliott Wave count and Fibonacci levels - 27 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 also 5 subwaves within the latter wave 5 - they are colored yellow in the chart. Subwave 5 is developing from 1.0938.

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, 1.0821-1.0968-1.0938.

Resistances:

- 1.1085 = confluence area of objective point (OP) and expanded objective point (XOP)
- 1.1176 = XOP
- 1.1220 = XOP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 1.0795 - this wave is not developed yet, therefore no supports 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 (40-50 pips below the current prices) or gets into the oversold area (60-70 pips below the current prices).

Performed by Roman Molodiashin, Analytical expert
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