According to wave count this currency pair is now developing wave C of the intermediate downtrend (colored royal blue on the chart). However on smaller timeframes we have a correction within this wave C. The targets of the corrective subwave are Fibonacci retracement points of 135.23-131.23: – 133.70 = .618 retracement, reached already
– 134.29 = .764 retracement
In case the price declines, the immediate supports are Fibonacci retracement points of 131.23-133.81.
Price targets below the current level:
– 132.82 = .382 retracement
– 132.52 = .50 retracement
– 132.22 = .618 retracement.gif)
Overbought/Oversold
The Detrended is now oscillating around zero level. Short-term longs are favoured around the oversold area which is 40-50 pips lower. If you want to combine this area with Fibonacci levels, you get 132.82 and 132.52 as your immediate supports (.382 and .50 retracements). In case you choose to follow the longterm downtrend, the resistances for short positions are 133.70 and 134.29 (.618 and .764 retracements).
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