The AUD/USD pair is developing an impulse wave A (light green in the chart) of the medium term downtrend. Within this wave there are five subwaves (red in the chart) and a potential corrective subwave B of A-B-C cycle.

The upside targets are Fibonacci retracements of 1.0473-1.0020.

Resistances:

- 1.0193 = .382 retracement
- 1.0246 = .50 ret
- 1.0300 = .618 ret

If the downtrend resumes, the immediate supports will be Fibonacci expansions of 1.0473-1.0304-1.0354, 1.0354-1.0110-1.0219, 1.0219-1.0020-1.0142.

Supports:

- 1.0019 = contracted objective point (COP)
- 0.9975 = objective point (OP)
- 0.9943 = OP
- 0.9912 = super expanded objective point (SXOP)

Overbought/Oversold

The larger wave is now moving downside, so it is recommended 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). Consider the possibilities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.