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.

Resistances:
- 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.

Supports:
- 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)




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 (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
InstaForex Companies Group © 2007-2011