This currency pair has rebounded from 130.32 and is now trading in still narrower flat - limited by 128.87-130.32. However, according to wave count this wave down is considered corrective (B) to 127.96-130.32. The targets of this corrective downmove are Fibonacci retracements of 127.96-130.32 and 126.43-130.32.
Supports:
- 128.86-83 = confluence area of .618 and .382 retracements (the price reversed within 1 point!)
- 128.38 = .50 ret
- 127.92 = .618 ret
In case the price continues its advance the nearest resistances will be the retracements of 130.32-128.87, 135.03-126.43, and expansions off 126.43-129.58-127.96, 127.96-130.32-128.87.
Resistances:
- 129.60 = .50 ret
- 129.77 = .618 ret
- 130.33 = contracted objective point (COP)
- 130.73 = .50 ret
- 131.11-23 = confluence area of two objective points (OP)
Overbought/Oversold
The Detrended Oscillator is oscillating closer around the zero level, each new peak is shorter than the previous, which confirms the flat. Assuming that the longer term trend is up it's preferable to seek for bottoming signals to enter long - when the price hits a Fibonacci support (listed above) or gets into the oversold - 30 pips to go.
Read more on how to apply Fibonacci studies to calculate price targets.
