Wave count shows this currency pair is now correcting intermediate uptrend within wave B (colored orange red on the chart), however the prevailing trend is up - wave C (colored red) is developing. First we can get the targets of the corrective wave, which are Fibonacci retracement points of 0.8446-0.8787 and expansions off 0.8787-0.8688-0.8776.
Price targets below the current level:
- 0.8677 = objective point (OP)
- 0.8657 = .382 retracement
- 0.8617-16 = confluence area of expanded objective point (XOP) and .50 ret
- 0.8576 = .618 ret
In case the price continues moving upward the targets will be Fib expansions off 0.8314-0.8556-0.8446 and 0.8446-0.8787-0.8688.
Price targets above the current level:
- 0.8838 = XOP
- 0.8899 = contracted objective point (COP)
Overbought/Oversold
The Dentrended is now oscillating around its zero level giving no clues as to when to enter a position with the uptrend. The nearest oversold area is 30-40 pips below, which roughly corresponds to the COP 0.8715. In case bottoming signals appear around this level or lower, at the OP 0.8677, it is possible to enter long.
