According to wave count this currency pair is now developing wave C of weekly degree. The strategic targets of this movement are Fibonacci expansions off 0.8066-0.8861-0.8314. On smaller timeframes we have wave 5 developing at the moment (colored magenta). This set of waves also provides us with some new targets - Fibonacci expansions off 0.8633-0.8858-0.8737 (waves 1-2) and 0.8737-0.9068-0.8905 (waves 3-4). Wave 5 also has its own subwaves and targets - expansions off 0.8905-0.9042-0.8965 and 0.8965-0.9065-0.9021.
Here are all the resistances based on Fibonacci studies:
- 0.9101-02-09-10 = confluence area of expanded objective point (XOP), contracted objective point (COP), and 2 objective points (OP)
- 0.9121 = OP
- 0.9183-87-89 = confluence area of XOP's and OP
- 0.9236 = OP
- and so on, see the image
In case the price reverses to the downside the nearest supports will be Fibonacci retracement points of the wave up from 0.8965.
Overbought/Oversold
The Detrended Oscillator is now at the zero level. The nearest oversold level is 40-50 pips below (see corresponding Fibonacci supports there, of wave up from 0.8965). Assuming that the major trend is still up it's good to look for a reversal signal against one of the listed Fibonacci supports for a buy.
