According to wave count this currency pair is now developing wave C of the med term uptrend (colored magenta on the chart). Wave C will be canceled if 0.9330 is broken to the downside. For now the targets of the upside movement are Fibonacci expansions off 0.8772-0.9183-0.9091 (daily waves A-B - colored royal blue on the chart), 0.9091-0.9456-0.9330 (the magenta waves - A-B), and 0.9330-0.9468-0.9355.
Resistances:
- 0.9493-0.9502 = confluence area of objective points (OP)
- 0.9556 = contracted objective point (COP)
- 0.9578 = expanded objective point (XOP)
- 0.9695 = OP
- 0.9716 = super expanded objective point (SXOP)
In case the price reverses to the downside the nearest supports will be Fibonacci retracements of the wave up from 0.9091 (wave not developed yet) and from 0.9330 (wave no developed yet).
Overbought/Oversold
The Detrended Oscillator is turning down from the overbought area. Assuming that the prevailing trend is up it's advisable to look for bottoming signals to enter long against one of the Fibonacci supports or in the oversold area which, according to the oscillator, is 45-55 pips below the current price.
