Wave count on the bigger timeframes shows that this currency pair is now developing impulse wave C of weekly degree (colored silver). Its strategic targets are Fibonacci expansions off 130.40-136.00-130.80:
- 136.40 = objective point (OP), reached already
- 139.86 = expanded objective point (XOP)
On smaller timeframes - hourly - we also have a set of three waves and wave C still developing (colored magenta). Its targets are Fibonacci expansion points off 130.80-137.53-134.18 and 134.18-136.33-135.80:
- 137.13 = contracted objective point (COP), reached already
- 137.95 = OP
- 138.34 = COP
- 139.28 = XOP
At the moment a corrective wave against the intermediate uptrend is developing. Its targets are Fibonacci retracements of 135.80-137.65 and 134.18-137.65:
- 136.73 = .50 retracement
- 136.51 = .618 ret
- 136.32 = .382 ret
- 135.92 = .50 ret
- and so on, see the image
Overbought/Oversold
The Detrended Oscillator is now in the oversold area, the latest peak has violently exceeded the previous ones, however, considering the corresponding price movement we may conclude that this is only a corrective wave, not a reversal, so far. Long positions are favored against one of the Fibonacci supports listed above - only in case a bottoming signal comes.
