AUD/USD Elliott wave count and Fibonacci levels, October 12, 2010

The AUD/USD pair is now trading in the flat limited by 0.9708-0.9909. The breakout of the flat will show the direction of the future med term frend. According to wave count on larger timeframes this pair is now developing daily wave C – colored royal blue in the chart. Within this wave there’s subwave A and corrective subwave B – colored magenta. The targets of the corrective downmove are Fibonacci retracements of 0.9541-0.9916, and expansions off 0.9916-0.9708-0.9909, 0.9909-0.9824-0.9879.

– 0.9780 = contracted objective point (COP)
– 0.9741 = expanded objective point (XOP)
– 0.9701 = objective point (OP)
– 0.9684 = .618 retracement
– 0.9656 = super expanded objective point (SXOP)
– 0.9572 = XOP
In case the price continues its advance the nearest strategic targets will be Fibonacci expansions off 0.8772-0.9599-0.9462, 0.9462-0.9749-0.9541, 0.9541-0.9916-0.9708.
– 0.9940 = contracted objective point (COP)
– 0.9973 = COP
– 1.0005 = expanded objective point (XOP)
Overbought/OversoldThe Detrended Oscillator is coming back to the zero level from the oversold area. Assuming that the prevailing trend is up and the pair trading in a flat it’s preferable to take longs on deep retracements when the price hits a significan Fibonacci support or gets into the oversold – 40 pips below the current price.

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