09.03.201210:05 Forex Analysis & Reviews: AUD/USD Elliott wave count and Fibonacci levels for March 9, 2012

AUD/USD has finished wave 0.9861-1.0856 (coral in the chart). Now corrective wave B is developing from 1.0856. Within this wave we have subwaves A, and B (magenta in the chart). Within the latter we have four subwaves (orange red in the chart).

Now the targets of the upmove are Fibonacci retracements of 1.0817-1.0509, 1.0856-1.0509, and expansions off 1.0509-1.0592-1.0533, 1.0533-1.0669-1.0617.

Resistances:

- 1.0682 = .50 retracement
- 1.0699-1.0701 = confluence area of .618 retracement and contracted objective point (COP)
- 1.0723 = .618 ret
- 1.0750-53 = confluence area of super expanded objective point (SXOP) and objective point (OP)

However if the downtrend resumes the immediate supports will be Fibonacci retracements of 1.0509-1.0669, 0.9861-1.0856.

Supports:

- 1.0608 = .382 ret
- 1.0589 = .50 ret
- 1.0570 = .618 ret
- 1.0476 = .382 ret

Overbought/Oversold

The larger wave is now moving down, so it's 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 (30-40 pips above the current prices), watch for possibilities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.