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

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.