AUD/USD is now developing corrective wave B of long term uptrend (colored light green in the chart) from 1.0844. Within this wave there are subwaves A, B, and C (colored royal blue in the chart) with subwave C still developing from 1.0815. This subwave was confirmed when the price broke below 1.0628 (top of wave A). However there are also smaller waves within the latter wave - they are A, and B (colored red) that is now developing from 1.0597.
Now the targets of the downmove are Fibonacci retracements of 1.0145-1.0844, and expansions off 1.0844-1.0628-1.0815.
Supports:
- 1.0599 = objective point (OP)
- 1.0577 = .382 retracement
- 1.0495 = .50 ret
- 1.0577 = .382 retracement
- 1.0495 = .50 ret
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0815-1.0597.
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 (current prices) or into the overbought area (20-35 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.
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