According to wave count this currency pair is now developing corrective wave to the med term uptrend. There's already a set of 5 waves (colored magenta), however this doens't necessarily mean the price will reverse. In case 0.9456 is breached we'll have an extension. If that happens the targets of the upside movement will be Fibonacci expansions off 0.8772-0.9183-0.9091, and the last leg up and correction 0.9091-0.9456-0.9330.
Resistances:
- 0.9502 = objective point (OP)
- 0.9556 = contracted objective point (COP)
- 0.9695 = OP
In case the price reverses down for a correction the nearest supports will be Fibonacci retracements of 0.8772-0.9456, and 0.9091-0.9456.
Supports:
- 0.9317 = .382 retracement
- 0.9274 = .50 ret
- 0.9230 = .618 ret
- 0.9195 = .382 ret (major)
- 0.9114 = .50 ret
- 0.9033 = .618 ret (major)
Overbought/Oversold
The Detrended Oscillator is in the overbought area. Assuming that the prevailing trend is up, but the current wave is corrective it's advisable to stand aside, and only start acting when the price reaches one of the Fibonacci supports or the oversold area, which is some 40-50 pips below the current price.
