FX.co ★ AUD/USD Elliott wave count and Fibonacci levels for January 18, 2012

AUD/USD broke above 1.0386 to show wave C of medium term uptrend (this one is colored magenta in the chart, and started from 1.0231). As this wave progresses the targets above may be Fibonacci expansions off A-B waves 1.0145-1.0377-1.0231, and also subwaves A and B (they're colored red in the chart) 1.0231-1.0449-1.0354.

If the price breaks above 1.0449 we'll have full grown subwave C (from 1.0354) that is part of wave C of larger degree (from 1.0231).

The immediate resistances:

- 1.0463 = objective point (OP)
- 1.0489 = contracted objective point (COP)
- 1.0572 = OP
- 1.0606 = expanded objective point (XOP)

However if corrective subwave B continues (from 1.0449), we'll calculate immediate supports using Fibonacci retracements from 1.0145-1.0449, 1.0231-1.0449.

Immediate supports:

- 1.0366 = .382 retracement
- 1.0340-33 = confluence area of .50 ret and .382 ret
- 1.0314 = .618 ret
- 1.0297 = .50 ret
- 1.0261 = .618 ret

Overbought/Oversold

The larger wave is still going up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (25-35 pips below the current prices).

Read more on how to trade with Fibonacci levels.