This currency pair is still developing longterm and intermediate uptrend. However the intermediate trend is now being corrected. Potential wave 4 is developing.
The targets of the corrective wave are Fibonacci retracements of 0.8941-0.9034, 0.8895-0.9034, 0.8737-0.9034:
- 0.8998 = .382 retracement, the price reversed within 1 pip
- 0.8987-81-77 = confluence area of .50, .382, and .618 ret
- 0.8964 = .50
- and so on, see the image
If the price keeps moving to the upside the targets will be Fibonacci expansions off 0.8314-0.8870-0.8633, 0.8633-0.8858-0.8737, 0,8737-0.8970-0.8895.
Price targets above the current level:
- 0.9039 = contracted objective point (COP)
- 0.9101-09 = confluence area of expanded objective point (XOP) and objective point (OP)
- 0.9128 = OP
- 0.9189 = OP
Overbought/Oversold
The Detrended Oscillator is slightly above its zero level indicating a bullish impulse. Assuming that the major trend is up it's better to wait for a retracement to one of the levels listed above. In case a bottoming signal occurs - a long position is favored.
