According to wave count this currency pair has just developed 5 waves of med term uptrend (colored red on the chart). And now corrective wave A is being formed. This wave will be cancelled on 0.9183 break. Under this scenario wave C will start developing with the following targets - Fibonacci expansions off 0.8772-0.9030-0.8862, 0.8862-0.9122-0.9068, 0.9068-0.9183-0.9091, 0.9091-0.9148-0.9099.
Resistances:
- 0.9191 = expande objective point (XOP)
- 0.9206 = objective point (OP)
- 0.9229 = contracted objective point (COP)
- 0.9248 = super expanded objective point (SXOP)
- 0.9277-79 = confluence area of XOP's
The targets of the downside movement are Fibonacci retracements of 0.8862-0.9183, and 0.8772-0.9183.
Supports:
- 0.9060 = .382 retracement
- 0.9026-23 = confluence area of .382 and .50 retracements
- 0.8985-78 = confluence area of .618 and .50 retracements
- 0.8929 = .618 ret
Overbought/Oversold
The Detrended Oscillator is in the overbought area. Assuming that the corrective wave is still developing, it's advisable to seek for topping stinals before 0.9183 break to enter short. In case 0.9183 is broken to the upside, the priorities will change for longs.
