Wave count on larger timeframes shows that this currency pair is now standing in impulse wave C of daily degree (colored light green) and subwave C of a minor degree (colored royal blue on the chart). The strategic targets of the upside movement are Fibonacci expansions off these waves: 0.8066-0.8861-0.8314 and 0.8314-0.8870-0.8633:
- 0.9109 = objective point (OP), reached already
- 0.9189 = OP
On smaller timeframes the situation is as follows: we have a set of 5 waves (colored magenta) that give more specific targets above - Fib expansions off 0.8633-0.8858-0.8737 (waves 1-2) and 0.8737-0.9068-0.8905 (waves 3-4). Wave 5 also has its own subwaves and targets - expansions off 0.8905-0.9042-0.8965:
- 0.9187 = expanded objective point (XOP)
- 0.9236 = OP
In case the price reverses to the downside the nearest supports will be Fibonacci retracement points of 0.8965-0.9145 and 0.8905-0.9145:
- 0.9076 = .382 retracement
- 0.9055-53 = .50, .382 ret
- 0.9034-25 = .618, .50 ret
- etc.
Overbought/Oversold
The Detrended Oscillator is clearly oversold, however, considering the corresponding price movement we may conclude that this is only a corrective wave, not a reversal, so far. Long positions are favored against one of the Fibonacci supports listed above - only in case a reversal signal comes.