Thursday, July 7, 2011

AUD/USD Elliott Wave count and Fibonacci Levels

AUD/USD has developed wave B of medium term uptrend 1.0789-1.0654 - colored magenta in the chart. And now the pair is developing impulse wave C from 1.0654. Within this wave there are A, B and C subwaves - colored yellow in the chart. Subwave C is still developing. Now the targets of the upmove are Fibonacci expansions off 1.0390-1.0789-1.0654, 1.0654-1.0698-1.0670.

- 1.0785 = super expanded objective point (SXOP)
- 1.0901 = contracted objective point (COP)

If the price stalls here and reverses to the downside the immediate supports will be Fibonacci retracements of 1.0390-1.0789 and expansions off 1.0789-1.1.0654-1.0759.

- 1.0676 = COP
- 1.0637 = .382 retracement
- 1.0624 = objective point (OP)
- 1.0589 = .50 ret
- 1.0542-41 = confluence area of .618 ret and expanded objective point (XOP)


Assuming that the medium term trend is up it's preferable to try long positions when the Detrended Oscillator goes below the zero level (15-20 pips below the current prices) or gets into the oversold area (40-50 pips below the current prices).

Performed by Roman Molodiashin, Analytical expert
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