AUD/USD is developing corrective wave B (light green in the chart) of a mid-term downtrend from 0.9581. Within this wave we have two subwaves (magenta in the chart). Potential corrective subwave B is developing from 1.0002.

Now the supports below the current price are Fibonacci retracements of 0.9710-1.0002, and 0.9581-1.0002.

Supports:

- 0.9841 = .382 retracement
- 0.9822 = .618 ret
- 0.9791 = .50 ret
- 0.9742 = .618 ret

If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 1.0473-0.9581.

Resistances:

- 1.0027 = .50 retracement
- 1.0132 = .618 ret

Overbought/Oversold

The bigger wave is now moving up, so it is preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (10-20 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.