For Traders

Analytical Reviews

Wave analysis

07.12.201109:47 Forex Analysis & Reviews: AUD/USD Elliott wave count and Fibonacci levels for December 7, 2011

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

AUD/USD is developing corrective wave B of medium term downtrend (colored light green in the chart) from 0.9663. Within this wave there are five subwaves (colored magenta in the chart) that have formed wave A of larger degree (colored royal blue in the chart). And now wave B of the same degree is developing from 1.0328. The targets of the downmove are Fibonacci retracements of 0.9942-1.0328, 0.9663-1.0328, and expansions off 1.0328-1.0150-1.0324.

Supports:

- 1.0146 = objective point (OP)
- 1.0135 = .50 retracement
- 1.0089 = .618 ret
- 1.0074 = .382 ret
- 1.0036 = expanded objective point (XOP)
- 0.9995 = .50 ret
- 0.9917 = .618 ret

If the price reverses to the upside and breaks above 1.0328 the immediate resistances will be Fibonacci retracements of 1.0752-0.9663, and expansions off 0.9666-1.0328-1.0150, 1.0150-1.0324-1.0155.

Resistances:

- 1.0329 = objective point (OP)
- 1.0336 = .618 retracement
- 1.0437 = expanded objective point (XOP)
- 1.0561 = contracted objective point (COP)

Overbought/Oversold

Assuming that the larger wave is now moving down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or gets into the overbought area (60-90 pips above the current prices).

Read more on how to apply Fibonacci studies to calculate price targets.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.