The AUD/USD is developing the potential corrective wave B of the 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). An impulse subwave C is developing from 1.0636. Within the latter we have subwaves A, B (magenta in the chart), and an impulse wave C developing from 1.0557. The latter also includes its own subwaves (red in the chart): A and B that is developing from 1.0304.

The downside targets are Fibonacci retracements 0.9861-1.0856 and expansions 1.0856-1.0423-1.0636, 1.0636-1.0336-1.0557.

Supports:

- 1.0257 = objective point (OP)
- 1.0241 = .618 retracement
- 1.0203 = OP

The upside targets are Fibonacci retracements 1.0856-1.0304, 1.0557-1.0304.

Resistances:

- 1.0431 = .50 ret
- 1.0460 = .618 ret
- 1.0580 = .50 retracement
- 1.0645 = .618 ret

Overbought/Oversold

The larger wave is now moving down, so it is prefereable to go short when the Detrended Oscillator goes above the zero level (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.