This currency pair is now moving within subwave 5 (colored magenta in the chart) of wave C of daily degree (the wave and expansions off A-B waves are colored royal blue in the chart). Within subwave 5 there are still smaller waves (colored orange red in the chart) A-B-C and corrective wave 4 developing. The targets of the downmove are Fibonacci retracements of 0.9990-1.0151 and 1.0013-1.0151.
Supports:
- 1.0089-82 = confluence area of .382 and .50 retracements - already hit (!)
- 1.0071-66 = confluence area of .60 and .618 retracements
- 1.0052 = .618 ret
If the price continues the uptrend and breaks above 1.0151 the nearest resistances will be Fibonacci expansions off 0.9833-0.9930-0.9843 (waves 1-2), 0.9843-1.0069-0.9990 (waves 3-4), and 0.9990-1.0060-1.0013 (subwaves A-B within wave 5).
Resistances:
- 1.0196 = super expanded objective point (SXOP)
- 1.0216 = objective point (OP)
Overbought/Oversold
Assuming that the prevailing trend is up it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero level to consider long positions. The zero level is just within some 5 pips away from the current price, the oversold area is 15-20 pips away from the current price - and corresponds to 1.0089 support.
Read more on how to apply Fibonacci studies to calculate price targets.
