This currency pair is now moving within wave C of daily degree (the wave and expansions off A-B waves are colored royal blue in the chart). Within this wave C there are A-B-C subwaves (colored magenta in the chart) and corrective wave 4, that is still developing. The targets of the corrective downmove are Fibonacci retracements of 0.9843-1.0069 and 0.9953-1.0069.
Supports:
- 0.9997 = .618 retracement, already hit (!)
- 0.9983 = .382 ret
- 0.9956 = .50 ret
- 0.9929 = .618 ret
If the price continues the uptrend and breaks above 1.0069 its nearest resistances will be Fibonacci expansions off 0.9539-1.0031-0.9833 (waves A-B of larger degree, daily), 0.9833-0.9930-0.9843 (waves 1-2), 0.9843-1.0069-0.9990 (waves 3-4).
Resistances:
- 1.0094 = super expanded objective point (SXOP)
- 1.0130-37 = confluence area of two contracted objective points (COP)
Overbought/Oversold
Assuming that the prevailing trend is up it's preferable to use oversold readings of the Detrended Oscillator in conjunction with Fib supports. The oversold area is 20-30 pips away from the current price which may correspond to a Fib support only on smaller timeframes, so stand aside in the meantime.
Read more on how to apply Fibonacci studies to calculate price targets.
