The AUD/USD pair is developing an impulse wave A (light green in the chart) of the medium term downtrend comprising five subwaves (magenta in the chart) and an impulse subwave 5 developing from 1.0014.

The downside targets below are Fibonacci expansions of 1.0473-1.0110-1.0219, 1.0219-1.0020-1.0142, 1.0142-0.9944-1.0014, 1.0014-0.9921-0.9948.

Supports:

- 0.9892-91 = confluence area of two contracted objective points (COP)
- 0.9856-55 = confluence area of two objective points (OP)
- 0.9820-16 = confluence area of expanded objective point (XOP) and OP
- 0.9798 = XOP

If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of the wave down from 1.0219 - this wave is not completed yet, so resistances are not available.

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 (10-15 pips above the current prices) or into the overbought area (25-35 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.