According to wave count on larger timeframes this currency pair is now developing impulse wave C of daily degree (colored light green) and subwave C of a minor degree (colored royal blue on the chart). Therefore the strategic targets of the movement up are Fib expansion points off 0.8066-0.8861-0.8314 and 0.8314-0.8870-0.8633:
- 0.9109 = objective point (OP), reached already
- 0.9189 = OP
On hourly timeframes there is also a set of subwaves - wave 5 is still developing (colored magenta). This set of waves gives its targets: Fib expansions off 0.8633-0.8858-0.8737 (waves 1-2) and 0.8737-0.9068-0.8905 (waves 3-4).
There is also a set of 5 minor waves within wave 5 (colored red). They give their own Fib expansions: 0.8905-0.9042-0.8965 and 0.8965-0.9145-0.9107:
- 0.9181-87 = confluence area of contracted objective point (COP) and expanded objective point (XOP)
- 0.9236 = OP
- 0.9250 = OP
In case the price reverses for a correction the nearest supports are Fibonacci retracement points of 0.8905-0.9148:
- 0.9055 = .382 retracement
- 0.9026 = .50 ret
- 0.8998 = .618 ret
Overbought/Oversold
The Detrended Oscillator is clearly in the oversold area. Assuming that the major trend is up it's better to wait for a reversal signal to enter long.
