AUD/USD is developing potential corrective wave B of medium term uptrend (coral in the chart) from 1.0856. Within this wave there are subwaves A, B and C (royal blue in the chart). Impulse subwave C is developing from 1.0636. Within the latter we have subwaves A, B and C (orange red in the chart), subwave C is developing from 1.0526. And this wave consists of subwaves A, B, and impulse C (yellow in the chart) of a smaller degree.

Now the targets of the downmove are Fibonacci retracements of 1.0423-1.0636, 0.9861-1.0856, and expansions off 1.0856-1.0423-1.0636, 1.0636-1.0457-1.0526, 1.0526-1.0421-1.0483.

Supports:

- 1.0378 = objective point (OP)
- 1.0368-58 = confluence area of contracted objective point (COP) and .50 retracement
- 1.0347 = OP
- 1.0313 = expanded objective point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0636-1.0376.

Resistances:

- 1.0475 = .382 retracement
- 1.0508 = .50 ret
- 1.0537 = .618 ret

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 (15-20 pips above the current prices) or into the overbought area (35-45 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.