Under the wave count this currency pair is developing corrective wave B of the longterm uptrend. The targets of wave B are Fibonacci retracement points of 131.17-135.80. There are more targets, provided by waves of a smaller degree. These are Fibonacci expansion points off 135.80-134.22-135.58, 135.58-134.08-135.36.
Nearest price targets below the current level are:
- 134.07-00 = confluence area of .50, .382 retracements, and objective point (OP)
- 133.81 = OP
- 133.67 = .618 ret
- 133.49 = .50 ret
- 133.16 = .764 ret
- 133.02-132.94 = confluence area of expanded objective point (XOP) and .618 ret
- 132.85 = XOP
- and so on, see the img.
In case the price resumes its movement to the topside the nearest strategic target is:
- 136.77 = OP
Overbought/Oversold
The Detrended Oscillator is clearly oversold, so it's a good time to seek an opportunity to enter long with the prevailing trend. The nearest levels to watch are - 134.00, 133.81, 133.67, 133.49. However it's not advisable to fade this downside movement, it's better to wait for a true reversal against one of these levels to be on the safe side.
