This currency pair is now developing corrective subwave B (colored magenta in the chart) within wave C of larger degree (colored royal blue).The targets of the corrective upmove are Fibonacci retracements of 0.9956-0.9539.
Resistances:
- 0.9698 = .382 ret, already hit (!)
- 0.9748 = .50 ret
- 0.9797 = .618 ret
If the downtrend continues and the price breaks below 0.9539 the nearest supports will be Fibonacci expansions off 1.0182-0.9727-0.9956 (daily A-B waves), 0.9956-0.9539-0.9700 (potential subwaves A-B within wave C), and retracements of 0.9539-0.9700 (before 0.9539 is exceeded).
Supports:
- 0.9619 = .50 ret
- 0.9601 = .618 ret
- 0.9501 = objective point (OP)
- 0.9442 = contracted objective point (COP)
Overbought/Oversold
Assuming that the corrective rise is not yet over now it too early to seek for shorts and the overbought condition (35-45 pips to go) might not be a good opportunity to short the market. Therefore stand aside until a wave down of a larger degree manifests itself.
Read more on how to apply Fibonacci studies to calculate price targets.
