This currency pair is still developing longterm and intermediate downtrend. According to wave count, we have wave C of the intermediate trend (colored red on the chart). The targets of the downside movement are Fibonacci expansion points off four sets of waves: 136.45-130.40-136.00, 136.00-133.02-135.21, 135.21-132.62-133.52, 133.52-131.94-132.42.
Price targets below the current level:
- 131.44 = contracted objective point (COP), reached already
- 130.93-84 = confluence area of objective points (OP's)
- 130.39 = expanded objective point (XOP)
In case the price advances the resistances to it will be Fibonacci resistances of downwave starting from 133.52. This advance will be wave 4 according to wave count.
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Overbought/Oversold
The Detrended Oscillator is slightly below the zero level and is moving towards the oversold area. As soon as the intermediate trend is down, one should wait for a 30-50 pip retracement into the area of 131.90-132.10 to initiate a short position.
