13.07.201015:00 Forex Analysis & Reviews: AUD/USD Elliott wave count and Fibonacci levels, July 13, 2010

AUD/USD is now moving within corrective wave 4 of the intermediate uptrend. This wave corresponds to its classical discription of being choppy and flat. The targets of the downside corrective movement are Fibonacci retracements of 0.8446-0.8787, 0.8314-0.8787 and expansion points off 0.8787-0.8688-0.8782 and 0.8782-0.8701-0.8779.

The targets below the current level look the following way:

- 0.8698 = objective point (OP)
- 0.8683 = OP
- 0.8657-48 = confluence area of .382 retracement and expanded objective point (XOP)
- 0.8622-17 = confluence area of XOP and .50 ret
- etc., see img.

In case the price advances and breaks 0.8787 the nearest targets will be Fib expansion points off 0.8314-0.8556-0.8446 and 0.8446-0.8787-0.866.

Price targets above the current level:

- 0.8838 = XOP
- 0.8899 = contracted objective point (COP)

Overbought/Oversold

The Detrended Oscillator is clearly in the oversold area. However, considering a very thin and flat market it will be reasonable to wait for a breakout, that will show the direction of the intermediate trend. Therefore it's better not to initiate any positions.