Wave count on larger timeframes shows that this currency pair is standing in impulse daily wave C (colored royal blue on the chart). Waves A-B - 0.8314-0.8870-0.8633, and the nearest Fibonacci projection they give is:
- 0.9189 = objective point (OP)
On smaller TF's we have a set of 5 subwaves (within the daily C). Wave 5 is still developing (colored magenta). The targets from these waves are Fib-expansions off 0.8633-0.8858-0.8737 (waves 1-2) and 0.8737-0.9068-0.8905 (waves 3-4) - see the levels colored magenta.
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), exceeded by one pip (!)
- 0.9236 = OP
- 0.9250 = OP
In case the price declines the nearest supports will be Fibonacci retracements of 0.9070-0.9182, 0.8905-0.9182:
- 0.9139 = .382 retracement
- 0.9126 = .50
- 0.9113 = .618
- 0.9076 = .382
- and so on, see the img.
Overbought/Oversold
The Detrended Oscillator is approaching its zero level from below. Assuming that the major trend is up, this may be a good indication of a reversal, since the nearest Fib-support - 0.9139 - has been reached by the price (within 2 pips).
