According to wave count, this currency pair is moving within wave 5 of the med term downtrend - the waves are colored magenta on the chart. Within this wave there's a set of 3 waves - ABC (colored red). The targets of the downside movement are Fibonacci expansions off 137.75-135.46-136.97, 136.97-132.78-134.80, 134.80-133.08-133.98, 133.98-133.13-133.53, and retracements of 130.80-137.75:
- 132.44 = .764 retracement
- 132.26-21-15 = confluence area of objective point (OP), contracted objective point (COP) and expanded objective point (XOP)
- 131.30 = super expanded objective point (SXOP)
- 131.20 = XOP
In case the price reverses to the upside the nearest resistances will be Fibonacci retracements of the downwave starting from 134.80.
Overbought/Oversold
The Detrended Oscillator is moving to the zero level. The neares overbought area is some 40-60 pips above. Assuming that the major trend is down, it's good to seek for reversal down from the overbought.
