Wave count shows that this currency pair has just developed wave 5 of the daily trend - colored royal blue in the chart. The level that "holds" the whole daily uptrend is 0.9462 - the start of wave 5. Break below will end the whole uptrend from 0.8772.
The targets of the downmove are Fibonacci retracements of 0.9462-0.9749 (wave 5), and expansions off the subwaves within the corrective downmove - 0.9749-0.9652-0.9705, 0.9705-0.9653-0.9682.
Supports:
- 0.9572 = .618 retracement
- 0.9548-46 = confluence area of expanded objective point (XOP) and super expanded objective point (SXOP)
These are all the supports so far. In case the price reverses up the nearest resistances will be Fibonacci retracements of the downleg from 0.9705 - the start of subwave 5 - colored orange red in the chart. The wave is not developed yet.
Overbought/Oversold
The Detrended Oscillator has exceeded all the previous bottoms, indicating a corrective wave of a larger degree is developing. Assuming that the medium term trend has changed it may be good to seek for topping signals when the price comes back above the zero level - some 50-60 pips to go - and enter short.
Read more on how to apply Fibonacci studies to calculate price targets.
