According to wave count on hourly timeframe this currency pair is now moving within a strong med term downtrend. All the major waves are impulsive. The targets of the downside movement are Fibonacci expansions off AB waves of all the degrees: 137.75-132.78-134.80 (dailies - colored royal blue), 134.80-132.43-134.03 (hourly - colored magenta), and smaller degrees 134.03-131.96-133.31:
- 127.89-83 = confluence area of super expanded objective points (SXOP)
In case the price continues the upside movement which is now regarded as corrective the targets will be Fibonacci retracements of 134.03-128.77, 133.31-128.77, 132.56-128.77 and expansions off 128.77-130.53-129.12:
- 130.67 = .50 retracement
- 130.78-88 = confluence area of objective point (OP) and .382 ret
- 131.04-11 = confluence area of .50 and .618
- 131.40 = .50 ret
- 131.58 = .618 ret
- 131.97-132.02 = confluence area of expanded objective point (XOP) and .618 ret
Overbought/Oversold
The Detrended Oscillator is in the overbought area. Assuming that the prevailing trend is down it's better to seek for topping signals to enter short.
