AUD/USD Elliott wave count and Fibonacci levels for February 24, 2012 2012-02-24
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 that is now developing from 1.0597 (colored magenta in the chart).
Now the targets of the downmove are Fibonacci retracements of 1.0145-1.0844, 1.0597-1.0754, and expansions off 1.0844-1.0628-1.0815, 1.0815-1.0597-1.0754.
- 1.0694 = .382 retacement - 1.0676 = .50 ret - 1.0657 = .618 ret - 1.0619 = contracted objective point (COP) - 1.0577 = .382 retracement
If the price reverses to the upside the immediate resistances will be Fibonacci expansions of the wave 1.0597-1.0754 and its retracement - the retracement is not developed yet, so no resistances are available so far.
The larger wave is now moving down, so it's prefereable to go short when the Detrended Oscillator goes above the zero level (20-25 pips above the current prices) or into the overbought area (50-55 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.