Wave count on hourly timeframes shows that this currency pair is now formally developing a corrective wave of a daily degree - wave B - colored light green on the chart. The targets of this movement up are Fibonacci retracements of 137.75-128.77, 134.80-128.77, 134.03-128.77:
Price targets above the current level:
- 132.02 = .618 retracement, the price reversed down within just 1 pip
- 132.20 = .382 ret
- 132.50 = .618 ret
- 133.26 = .50 ret
- 134.32 = .618 ret
In case the price keeps declining the nearest supports will be Fibonacci retracements of 129.74-132.01 and 128.77-132.01:
- 130.88-77 = confluence area of .50 ret and .382 ret, reached already
- 130.61 = .618 ret
- 130.39 = .50 ret
- 130.01 = .618 ret
Overbought/Oversold
The Detrended Oscillator is moving into the overbought area. The overbought is still some 30 pips above, oversold - about 80 pips below. Assuming that the major trend may be reversing to the upside and the current wave (colored red) being corrective (B) it's advisable to wait until the price reaches one of the Fibonacci supports and then look for reversal signals to enter long.