According to wave count this currency pair is now developing subwave C (colored red) within wave C (magenta). The subwave will be confirmed in 0.8870 broken. This wave is cancelled (and so is the whole movement 0.8314-0.8870) in case 0.8726 is broken to the downside.
The price targets of the corrective movement are Fibonacci retracement points of 0.8314-0.8870 and expansions off 0.8870-0.8726-0.8848.
Here they are:
- 0.8704 = objective point (OP)
- 0.8638 = .382 retracement
- 0.8615 = expanded objective point (XOP)
- 0.8592 = .50 ret
- and so on, see the img
In case the price resumes its movement to the upsede the targets remain basically the same plus some new Fibonacci expansions off 0.8682-0.8870-0.8726:
- 0.8893 = contracted objective point (COP)
- 0.8914 = OP
- 0.9023-30 = confluence area of OP and XOP
- 0.9080 = super expanded objective point (SXOP)
Overbought/Oversold
The Detrended Oscillator is clearly oversold. However, considering the conditions of a flat market it would be reasonable to wait for a true reversal and not to fade the downside movement right now. Levels to watch for a reversal are - 0.8704 and 0.8658.
