FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for January 24, 2012

AUD/USD stopped for a correction within impulse wave C of medium term uptrend (colored magenta in the chart) from 1.0354. Within this wave we have potencial corrective subwave 4 (colored red in the chart), that started from 1.0573.

Now the targets of the downmove are Fibonacci retracements of 1.0354-1.0573, 1.0370-1.0573.

Supports:

- 1.0471 = .50 retracement
- 1.0463 = .50 ret
- 1.0448 = .618 ret
- 1.0438 = .618 ret

But if the pair ends wave 4 and breaks above 1.0573 to continue the uptrend the immediate resistances will be Fibonacci expansions off A-B waves and subwaves: 1.0145-1.0377-1.0231, 1.0231-1.0449-1.0354, and 1.0354-1.0436-1.0370.

Resistances:

- 1.0585 = super expanded objective point (SXOP)
- 1.0606 = expanded objective point (XOP)
- 1.0707 = XOP

Overbought/Oversold

The larger wave is still going up, that's why it's prefereable to open longs when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (10-20 pips below the current prices).

Read more on how to trade with Fibonacci levels.