This currency pair is 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 A-B-C subwaves (colored red), and subwave C is now developing. The targets of this upmove are Fibonacci expansions off 0.9833-0.9930-0.9843 (waves 1-2), 0.9843-1.0069-0.9990 (waves 3-4), and 0.9990-1.0151-1.0086 (subwaves A-B within wave 5), 1.0086-1.0147-1.0110.
Resistances:
- 1.0209-16 = confluence area of expanded objective point (XOP) and objective point (OP)
- 1.0247 = OP
If the price reverses down the nearest supports will be Fibonacci retracements of 1.0086-1.0197.
Supports:
- 1.0155 = .382 retracement
- 1.0141 = .50 ret
- 1.0128 = .618 ret
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 price is now in the oversold area, but the nearest resistance is 1.0155 - this is the level to watch for bottoming signals to enter long.
Read more on how to apply Fibonacci studies to calculate price targets.
