This currency pair is now developing potencial wave C of the intermediate downtrend. The price targets below the current level are Fibonacci retracement points of 133.01-135.23 and expansion points off 136.00-133.01-135.23.
Price targets below the current level:
- 133.53 = .764 retracement, reached already
- 133.38 = contracted objective point (COP)
- 132.24 = objective point (OP)
Wave C is confirmed in case 133.01 is broken, the impulse is cancelled if 135.23 is broken since this level is the base of wave C.
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Overbought/Oversold
The Detrended Oscillator is deep in the oversold area, therefore now is not the time to short the market into wave C. The most logical area to initiate short positions is 134.20-40, which is when the indicator crosses above the zero level and the price reaches Fibonacci retracement points of the last wave down - e.g. .382 or .50.
