According to wave count, before 1.0002 is broken to the upside this currency pair is moving within corrective wave B to wave A 1.0002-0.9662. The targets of the corrective wave are Fibonacci expansions off smaller waves within it: 0.9662-0.9889-0.9742, 0.9742-0.9853-0.9757, 0.9757-0.9844-0.9778. In case the price breaks above 1.0002 the near term targets will remain basically the same as listed.
Resistances:
- 0.9969 = objective point
- 1.0006 = super expanded objective point (SXOP)
- 1.0048 = SXOP
If the price reverses down the nearest supports will be Fibonacci retracements of the wave up starting from 0.9742 - this wave is not yet developed.
Overbought/Oversold
The Detrended Oscillator has breached the previous high indicating a stronger wave. Assuming that until 1.0002 the trend may turn down it's preferable to seek for topping signals to enter short - when the price hits a next Fibonacci resistance or gets into the oversold - 15-20 pips to go.
Read more on how to apply Fibonacci studies to calculate price targets.
