This currency pair is moving within corrective wave 4 - colored red in the chart - to the med term uptrend. The targets of the corrective movement are only Fibonacci retracements of 0.9769-0.9996 and 0.9708-0.9996.
Supports:
- 0.9909 = .382 retracement, reached already
- 0.9886-83 = confluence area of .382 and .50 retracements
- 0.9856-52 = confluence area of .618 and .50 rets
- 0.9818 = .618 ret
The targets of the upmove are Fibonacci expansions off 0.8772-0.9599-0.9462 (daily waves), 0.9462-0.9749-0.9541 (subwaves - royal blue), 0.9541-0.9916-0.9708.
Resistances:
- 1.0005 = expanded objective point (XOP)
- 1.0083 = objective point (OP)
Overbought/Oversold
The Detrended Oscillator is moving into the oversold confirming that the leg down has been fully developed. Assuming that the prevailing trend is up it's preferable to seek for bottoming signals to enter long. A small retracement will be enough.
Read more on how to apply Fibonacci studies to calculate price targets.
