As wave count show this currency pair is developing daily impulse downwave C - colored royal blue in the chart. Within this wave there's also a set of A-B-C waves colored magenta with wave C developing. Within the latter C there's a set of A-B-C subwaves as well - colored red.
All in all the targets below the current price level are Fibonacci expansions off the daily waves A-B 135.03-130.78-132.93, A-B subwaves 132.93-131.36-131.89, still smaller waves 131.89-130.77-131.87, 131.87-130.38-130.86.
Supports:
- 130.32 = objective point (OP)
- 130.06 = expanded objective point (XOP)
- 129.94 = contracted objective point (COP)
- 129.37-35 = confluence area of OP and XOP
In case the price reverses up for a corrective wave the nearest resistances will be Fibonacci retracements of 131.87-130.38.
Resistances:
- 130.95 = .382 retracement
- 131.13 = .50 ret
- 131.30 = .618 ret
Overbought/Oversold
The Detrended Oscillator is moving south after a short break above the zero line. This just confirms the med term downtrend. In view of this it's preferable to seek for topping signals when the price hits a Fibonacci resistance or gets into the overbought (30-40 pips to go) to enter short.
Read more on how to apply Fibonacci studies to calculate price targets.
