This currency pair is moving within corrective subwave B (colored magenta in the chart) that is part of larger wave C (colored royal blue). This corrective upmove already has three waves with wave C developing (colored orange red in the chart). The targets above the current price level are Fibonacci retracements of 0.9956-0.9539, and expansions off 0.9539-0.9700-0.9624, 0.9624-0.9697-0.9633.
Resistances:
- 0.9785 = objective point (OP)
- 0.9797 = .618 ret
- 0.9824 = super expanded objective point (SXOP)
- 0.9884 = expanded objective point (XOP)
In case the price reverses down the nearest supports will be Fibonacci retracements of 0.9539-0.9781, 0.9624-0.9781.
Supports:
- 0.9721 = .382 retracement
- 0.9703 = .50 ret
- 0.9689-84 = confluence area of .382 and .618 retracements
- 0.9660 = .50 ret
- 0.9631 = .618 ret
Overbought/Oversold
So far the Detrended Oscillator should not be used to provide entry points because the current upmove is corrective according to wave count. We should watch the price when it hits a Fib resistance and the Oscillator is oversold - 35-45 pips to go (that corresponds to 0.9797 resistance).
Read more on how to apply Fibonacci studies to calculate price targets.
