Wave count on hourly timeframe shows that this pair is moving in a strong med term downtrend. The targets of the downside movement are Fibonacci retracements of 0.8314-0.9221 and expansions off 0.9221-0.8842-0.8980.
Price targets below the current level:
- 0.8768 = .50 retracement
- 0.8746 = contracted objective point (COP)
- 0.8660 = .618 retracement
In case the price reverses to the upside the nearest resistances will be Fibonacci retracements of 0.9221-0.8842:
- 0.8987 = .382 retracement
- 0.9032 = .50 ret
- 0.9076 = .618 ret
Overbought/Oversold
The Detrended Oscillator is firmly below the zero level. Assuming that the major trend is down it's recommended to seek for topping signals after retracements to enter short. The nearest overbought area is 30-40 pips above the current price.