AUD/USD is developing impulse wave A (light green in the chart) of medium term downtrend. Within this wave there are three subwaves (red in the chart), and impulse subwave C is developing from 1.0354. Within the latter we have subwaves of a still smaller degree (yellow in the chart), and impulse subwave 5 is still developing from 1.0278.

The targets below are Fibonacci expansions off 1.0473-1.0304-1.0354, 1.0354-1.0284-1.0337, 1.0337-1.0239-1.0278.

Supports:

- 1.0224 = expanded objective point (XOP)
- 1.0217 = contracted objective point (COP)
- 1.0185-80 = confluence area of two OP's

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 1.0473-1.0239.

Resistances:

- 1.0328 = .382 retracement
- 1.0356 = .50 ret
- 1.0384 = .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 (5-10 pips above the current prices) or into the overbought area (20-30 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.