According to wave count this currency pair is developing a weekly wave up, which is labeled C (colored silver on the chart). The strategic targets of this longterm wave are Fibonacci expansions off 130.40-136.00-130.80.
The strategic targets are:
– 136.40 = objective point (or OP), has been reached already
– 139.86 = expanded objective point (XOP)
If we look at smaller timeframes, we’ll see corrective wave B that is going against the intermediate uptrend (colored mangeta on the chart). The calculations for this wave are simple – Fibonacci retracement points of waves 134.39-137.53 and 130.80-137.53.
Targets of the corrective wave:
– 135.96 = .50 retracement, has been reached already by the price
– 135.59 = .618 ret
– 134.96 = .382 ret
– 134.14 = .50 ret
– 133.37 = .618 ret
Overbought/Oversold
The Detrended Oscillator is now at the zero level. The nearest oversold area is 40-60 pips down which corresponds to 135.59 – the Fib-node .618 of wave 134.39-137.53. A long entry is favored against this level in case of a reversal signal.
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