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 four subwaves (red in the chart) and a potential corrective subwave 4 developing from 1.0110 that comprises smaller subwaves (yellow in the chart); a potential corrective subwave 4 is still developing from 1.0110.

The downside targets are Fibonacci expansions of 1.0473-1.0304-1.0354, 1.0354-1.0110-1.0219.

Supports:

- 1.0081 = expanded objective point (XOP)
- 1.0068 = contracted objective point (COP)
- 0.9975 = objective point (OP)

If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 1.0354-1.0110, 1.0473-1.0110 and expansions of 1.0110-1.0219-1.0167.

Resistances:

- 1.0232-34 = confluence area of .50 retracement and COP
- 1.0249 = .382 ret
- 1.0261 = .618 ret
- 1.0276 = OP
- 1.0292 = .50 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 (15-25 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.