According to wave count this currency pair has just developed wave C of the daily downtrend and thus the whole downside movement from 137.75 (weekly wave A). The current upside movement is considered weekly corrective wave B.
The targets above are Fibonacci retracements of 137.75-127.62, and expansions off 127.62-129.48-128.61.
Resistances:
- 131.49 = .382 retracement
- 131.62 = expanded objective point (XOP)
- 132.69 = .50 ret
- 133.48 = super expanded objective point (SXOP)
In case the pair reverses down for a correction the nearest supports will be Fibonacci retracements of the upwave starting from 128.61 (wave C - colored yellow - not developed yet).
Overbought/Oversold
The Detrended Oscillator is in the oversold area. Assuming that the prevailing trend is up it's advisable to look for bottoming signals near the Fibonacci resistances to enter long (the resistances are not yet provided). The nearest oversold (another resistance) is some 160 pips below the current price. May be too far, therefore stand aside.
