This currency pair is now developing an intermediate uptrend. All the waves and subwaves of the trend are up (C). From the long-term perspective the price is trading in the range limited by 136.45-130.40. Weekly wave C (colored plum on the chart) has precisely reached its objective point (COP) - 130.97.
The targets above the current price level are Fibonacci expansions off 130.80-133.29-132.39, 132.39-134.88-133.86:
- 135.40 = contracted objective point (COP), reached
- 136.35-42 = confluence area of OP and expanded objective point (XOP)
- 137.89 = XOP
- 138.91 = super expanded objective point (SXOP)
In case the price reverses to the downside the immediate supports are Fib retracement points of waves up starting from 132.39 and 130.80.
Overbought/Oversold
The Detrended Oscillator is now at the zero level. However the oversold area does not necessarily mean a buy, since the movement up was very sharp. It's better to wait for a deep retracement to a significant Fib-support (134.38, 134.02, 133.66).