According to wave count this currency pair is now developing impulse wave C of the med term uptrend (colored red on the chart). Within wave C we already have a cycle of 3 waves and corrective wave 4.
As far as the upside movement is concerned, the nearest resistances are Fibonacci expansions off 0.8772-0.9030-0.8862 (waves AB - the red ones) and 0.8862-0.9005-0.8977 (subwaves AB - the orange red ones - within wave C).
Resistances:
- 0.9208 = expanded objective point (XOP)
- 0.9279 = XOP
In case the price goes down for a deeper correction the nearest supports will be Fibonacci retracements of 0.8977-0.9122 and 0.8862-0.9122.
Supports:
- 0.9067 = .382 retracement
- 0.9050 = .50 ret
- 0.9032 = .618 ret
- 0.9023 = .382 ret
- 0.8992 = .50 ret
- 0.8961 = .618 ret
Overbought/Oversold
The Detrended Oscillator is returning up from the oversold area. However judging by its recent behaviour we can conclude that the market is very flat. Assuming that the prevailing trend is still up it's advisable to seek for bottoming signals against one of the Fibonacci supports listed above, or stand aside to be on the safe side.
