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31.05.2012 09:55 AM
AUD/USD Elliott Wave Count and Fibonacci levels for May 31, 2012

The AUD/USD pair is developing an impulse wave A (light green in the chart) of the medium term downtrend. Within this wave we have three subwaves (royal blue in the chart), and impulse subwave C is developing from 0.9897 comprisisng  three subwaves (orange red in the chart) and a subwave C developing from 0.9855

Presently the immediate supports are Fibonacci expansions of 0.9897-0.9800-0.9855.

Supports:

- 0.9601 = super expanded objective point (SXOP)

If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 0.9897-0.9673.

Resistances:

- 0.9759 = .382 retracement
- 0.9785 = .50 ret
- 0.9811 = .618 ret

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Overbought/Oversold

The bigger wave is now moving downwards, so it is preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (5-15 pips above the current prices). Consider the opportunities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.

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