According to wave count this currency pair is now moving within corrective wave to the impulse 127.61-135.03. This downside movement will be over in case 133.39 is broken to the upside, since this level is the last top and the base of wave 5 (colored yellow). If 133.39 remains intact and the price keeps moving downwards, then the nearest targets will be Fibonacci retracements of 127.62-135.03 and expansions off 135.03-133.86-134.43, 134.43-133.11-133.39.
Supports:
- 132.20 = 0.382 retracement
- 132.07 = objective point (OP)
- 131.37-35-32 = confluence area of super expanded objective point (SXOP), .50 retracement and expanded objective point (XOP)
- 130.45 = 0.618 ret
- 129.93 = SXOP
The downside movement will be over if 133.39 is broken to the upside, since this level is the base of the last subwave 5. In this case the targets of the upside movement will be Fibonacci retracements of 135.03-132.35.
Resistances:
- 133.36 = .382 retracement
- 133.68 = .50 ret
- 134.00 = .618 ret
Overbought/Oversold
The Detrended Oscillator is in the overbought area. Assuming that the med term trend might be reversing up (that downside movement was a corrective wave), it's advisable to stand aside until a retracement happens - either to a Fibonacci support, or into the oversold area - 25-35 pips below the current price. Longs are favored only in case of bottoming signals.