Thursday, August 11, 2011

AUD/USD Elliott Wave count and Fibonacci levels - August 11, 2011

AUD/USD is moving within subwave 4 (from 1.09928) of medium term downtrend - colored magenta in the chart. These four waves are part of wave A of larger degree from 1.1079 (colored royal blue in the chart). Within wave 4 there are two subwaves (colored red in the chart) with subwave B still developing from 1.0414.

The targets of the upmove are Fibonacci retracements of 1.1063-0.9928, and expansions off 0.9928-1.0414-1.0111.

Resistances:
- 1.0414 = contracted objective point (COP)
- 1.0496 = .50 retracement
- 1.0597 = objective point (OP)
- 1.0629 = .618 ret

If the price reverses to the downside the immediate supports will be Fibonacci retracements 0.9928-1.0414.

Supports:
- 1.0114 = .618 ret
- 0.9928 = 100% ret







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 (110-140 pips below the current prices).

Performed by Roman Molodiashin, Analytical expert

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