Wave count on daily chart shows that this currency pair is now developing corrective wave B to 135.03-126.43 (wave A). Within this wave there's a set of A-B-C subwaves, with wave C developing - colored magenta in the chart. The targets of the corrective upmove are Fibonacci retracements of 135.03-126.43 (wave A) and expansions off 126.43-129.58-127.96 (A-B subwaves).
Resistances:
- 130.73 = .50 retracement
- 131.11 = objective point (OP)
- 131.74 = .618 ret
In case the price continues its decline the nearest supports will be Fibonacci retracements of 127.96-130.32 and 126.43-130.32.
Supports:
- 129.14 = .50 ret
- 128.86-83 = confluence area of .618 and .382 retracements
- 128.28 = .50 ret
- 127.92 = .618 ret
Overbought/Oversold
The Detrended Oscillator is moving down from the zero line. The two last peaks up show divergence with the price which may be an indication of a reversal. Assuming that the midterm trend is up short-term longs are preferable, but it's important to remember that this med term up is only correction of the long term downtrend.
Read more on how to apply Fibonacci studies to calculate price targets.