FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for January 26, 2012

Above 1.0573 AUD/USD is developing impulse subwave РЎ (colored magenta in the chart) from 1.0427, that is part of impulse wave C of medium term uptrend (colored royal blue in the chart) from 1.0231. On smaller scale the former subwave has its own subwaves of smaller degree - these are A, B and C (colored orange red in the chart) with subwave C still developing from 1.0444.

The targets above as of now are Fibonacci expansions off 1.0145-1.0377-1.0231, 1.0231-1.0573-1.0427, 1.0427-1.0540-1.0444, 1.0444-1.0619-1.0588.

Resistances:

- 1.0638 = contracted objective point (COP)
- 1.0696 = COP
- 1.0740 = super expanded objective point (SXOP)
- 1.0763-69 = confluence area of two objective points (OP)

However if the price reverses to the downside to correct the uptrend the immediate supports will be Fibonacci retracements of the wave up from 1.0444 - this wave is not developed yet, so no supports are available so far.

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 (25-35 pips below the current prices) or into the oversold area (50-60 pips below the current prices).

Read more on how to trade with Fibonacci levels.