According to wave count this currency is moving within corrective daily wave B. Until 130.80 is broken, this wave will remain corrective. The targets of this wave are Fibonacci retracements of 130.80-137.75, and expansions off 137.75-135.46-136.97, 136.97-135.02-135.72:
- 133.45-26 = confluence area of .618 retracement and expanded objective point (XOP)
- 135.56 = XOP
- 132.44 = .764 retracement
- 130.97 = super expanded objective point (SXOP)
- 130.61 = SXOP
On smaller timeframes the price has developed 3 waves (colored orange red) and is now forming corrective wave 4. Its targets are Fibonacci retracements of 135.72-132.78 and 136.97-132.78, and expansions off 132.78-133.92-133.00:
- 133.90 = .382 ret, reached already
- 134.14-25 = confluence area of objective point (OP) and .50 ret
- 134.38 = .382 ret
- 134.60 = .618 ret
- and so on, see the image
Overbought/Oversold
The Detrended Oscillator is clearly overbought and has breached the previous up-peak. That may be a good indication that midterm ABC wave cycle has ended. Assuming that the major trend is still up, it's better to look for longs against one of the listed Fibonacci supports.
