According to wave count this currency pair is now developing corrective wave 4 of the intermediate uptrend. The targets of the downside corrective movement are Fibonacci retracement points of 0.8446-0.8787, 0.8314-0.8787 and expansions off 0.8787-0.8688-0.8782.
The nearest Fibonacci supports are:
- 0.8683 = objective point (OP)
- 0.8657 = .382 retracement
- 0.8622-17-06 = confluence area of expanded objective point (XOP), .50 retracement and .382 ret.
In case the price keeps advancing and breaks 0.8787 the nearest resistances will be Fibonacci 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 Detrended Oscillator is crearly in the oversold area now. It's reasonable to enter long against the nearest Fibonacci support area, which is 0.8683-0.8657, in case a bottoming signal appears.
