According to wave count this currency pair is now developing impulse wave C of the corrective A-B-C cycle. This cycle is considered a corrective wave to the impulse 127.62-135.03. The nearest targets below the current level are Fibonacci retracements of 127.62-135.03, and expansions off 135.03-132.33-133.39.
Supports:
– 131.72 = contracted objective point (COP), reached already (!)
– 131.32 = .50 retracement
– 130.69 = objective point (OP)
– 130.45 = .618 ret
– 129.02 = expanded objective point (XOP)
In case the price keeps moving up the nearest resistances will be Fibonacci retracements of 133.39-131.70.
Resistances:
– 132.54 = .50 ret, reached already
– 132.74 = .618 ret
Overbought/Oversold
The Detrended Oscillator is now oscillating around the zero level, confirming the flat. Assuming that the prevailing trend is down, it’s advisable to seek for topping signals against one of the Fibonacci resistances or in the overbought (15-20 pips above the current price), and then initiate short positions.
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