AUD/USD is developing corrective wave B (light green in the chart) of medium term downtrend from 0.9581. Within this wave we have three subwaves (magenta in the chart), and impulse subwave C is developing from 0.9820. Within the latter potential impulse subwave C (red in the chart) is developing from 0.9850.

Now the immediate resistances are Fibonacci retracements of 1.0473-0.9581, and expansions off 0.9581-1.0002-0.9820, 0.9820-1.0007-0.9850.

Resistances:

- 0.9966 = contracted objective point (COP)
- 1.0027 = .50 retracement
- 1.0037 = objective point (OP)
- 1.0080 = COP
- 1.0132 = .618 ret
- 1.0153 = expanded objective point (XOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9581-1.0007, and expansions off 1.0007-0.9850-0.9970.

Supports:

- 0.9873 = COP
- 0.9844 = .382 ret
- 0.9813 = OP
- 0.9794 = .50 ret
- 0.9744 = .618 ret
- 0.9716 = XOP

Overbought/Oversold

The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (5-10 pips below the current prices) or into the oversold area (25-35 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.

Read more on how to trade with Fibonacci levels.