According to wave count on larger timeframes this currency pair is developing impulse wave C of weekly degree (colored silver on the chart), its strategic targets are Fibonacci expansions points off waves A and B - 130.40-136.00-130.80:
- 136.40 = objective point (OP), reached already
- 139.86 = expanded objective point (XOP)
On hourly timeframes we have a corrective wave (colored royal blue) against the movement 130.80-137.75. The targets of the corrective wave are Fibonacci retracements of 134.18-137.75, 130.80-137.75, and expansions off 137.75-135.83-137.47:
- 135.55-54 = confluence area of objective point (OP) and .618 retracement
- 135.10-02 = confluence area of .382 and .764 ret
- 134.36-28 = confluence area of expanded objective point (XOP) and .50 ret
Overbought/Oversold
The Detrended Oscillator has breached its previous peak down, indicating a corrective wave of a larger degree. At the moment longs are not favored. They'd better be considered against a nearest Fibonacci support (see above) some 70-90 pips below the current price level.