This currency pair is developing wave C of medium term uptrend - the wave and expansions off waves A and B are colored royal blue in the chart. Within wave C there are subwave A-B and C developing - colored magenta in the chart. The latter also has subwaves A-B and C developing - colored royal blue in the chart.
The targets of the upmove are Fibonacci expansions of all the A-B waves and subwaves: 0.9539-1.0031-0.9833, 0.9833-1.0069-0.9990, 0.9990-1.0197-1.0118, 1.0118-1.0189-1.0162.
Resistances:
- 1.0246 = contracted objective point (COP), already hit
- 1.0277 = expanded objective point (XOP)
- 1.0325 = confluence area of two objective points (OP)
- 1.0348 = super expanded objective point (SXOP)
If the price reverses down the nearest supports will be Fibonacci retracements of the waves up from 1.0162 and from 1.0118 - these are not developed yet.
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 above the zero level, therefore now is not a good moment to open longs. A level to watch lies 20-30 pips below the current price - 1.0200.
Read more on how to apply Fibonacci studies to calculate price targets.
