This currency pair has confirmed subwave C (colored magenta) within corrective daily wave B (colored royal blue). On smaller timeframes there's also a set of A-B-C subwaves within the hourly C wave, they are colored red on the chart. We use retracements and projections off these waves to calculate the targets below. They are retracements of 127.62-135.03 and expansions off 135.03-131.70-133.75, 133.75-131.64-132.65.
Supports:
- 130.54-45-42 = confluence area of objective point (OP), .618 retracement and one more OP
- 129.24 = expanded objective point (XOP)
- 128.36 = XOP
In case the price continues advance within a short term correction its targets will be Fibonacci retracements of 132.65-130.78.
Resistances:
- 131.49 = .382 retracement
- 131.72 = .50 ret
- 131.94 = .618 ret
Overbought/Oversold
The Detrended Oscillator is oscillating around the zero level, confirming the flat. The OB zone is getting narrower, and OS - wider, which means the downside impulses are stronger, pushing the borders of the respective zones lower and confirming the med term downtrend. In view of this we would venture shorts especially when the price hits one of the Fibonacci resistances or is slightly overbought - 10-20 pips above the current price.
Read more on how to apply Fibonacci studies to calculate price targets.