AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are three subwaves (royal blue in the chart), that may form A-B-C cycle, and corrective wave A (of new cycle) is developing against the downtrend from 1.0304. Within this wave we have subwaves A, B, and C (red in the chart) that is developing from 1.0366. Now the targets of the upmove are Fibonacci retracements of 1.0856-1.0304, 1.0636-1.0304, and expansions off 1.0304-1.0453-1.0366.
Resistances:
- 1.0470 = .50 retracement
- 1.0509-15 = confluence area of .618 ret, .382 ret and objective point (OP)
- 1.0580 = .50 ret
- 1.0607 = expanded objective point (XOP)
If the downtrend resumes the immediate supports will be Fibonacci retracements of 0.9861-1.0856, and expansions off 1.0856-1.0423-1.0636.
Supports:
- 1.0241 = .618 retracement
- 1.0203 = OP

Overbought/Oversold
The larger wave is now moving down, so it's prefereable to go short when the Detrended Oscillator goes above the zero level (25-30 pips above the current prices) or into the overbought area (55-70 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
Read more on how to trade with Fibonacci levels.
The material has been provided by Instaforex Company - instaforex.com

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