AUD/USD is developing impulse wave A (light green in the chart) of medium term downtrend. Within this wave we have two subwaves (royal blue in the chart), and potential corrective subwave B is developing from 0.9689. The latter contains two subwaves (red in the chart), and subwave B is developing from 0.9888.

Now the immediate resistances are Fibonacci retracements of 1.0473-0.9689, and expansions off 0.9689-0.9888-0.9802.

Resistances:

- 0.9925 = contracted objective point (COP)
- 0.9988 = .382 retracement
- 1.0001 = objective point (OP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 0.9689-0.9888.

Supports:

- 0.9789 = .50 retracement
- 0.9765 = .618 ret

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 (15-20 pips below the current prices) or into the oversold area (40-55 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.