This currency pair is moving within wave C of the medium term uptrend - colored red in the chart. Wave C was confirmed when the price broke above 131.74. Now this wave C consists of A-B-C subwaves with subwave C developing (colored orange red in the chart). The targets of the upmove are Fibonacci retracements of 134.19-129.33, and expansions off 129.33-131.74-129.43, 129.43-130.64-129.51, 129.51-130.75-130.25, 130.25-131.77-131.42.
Resistances:
- 132.26-33.36 = confluence area of expanded objective point (XOP), .618 retracement and contracted objective point (COP)
- 132.68 = super expanded objective point (SXOP)
- 132.94 = objective point (OP)
- 133.33 = XOP
However if the price reverses down the nearest supports will be Fibonacci retracements of the wave up from 129.51 - this wave is not developed yet.
Overbought/Oversold
Assuming that the prevailing trend of this currency pair is up it would be preferable to buy on dips, however the pair has been consolidating for quite a while and even overbought/oversold readings of the Detrended Oscillator should not be used at this moment. Stand aside until the breakout of this micro flat occurs.
Read more on how to apply Fibonacci studies to calculate price targets.