According to wave count this currency pair is now trading in corrective waves (B) of various degrees. First, there is daily wave B down, starting from 135.03 (colored royal blue on the chart), then there’s subwave B (colored magenta) within the previous B. Next, there’s again subwave B – colored red. This set of corrective subwaves confirms the flat.
Until 133.75 is intact the targets of the daily B are Fibonacci retracements of 127.62-135.03 and expansions off 135.03-131.70-133.75.
Supports:
– 131.69 = contracted objective point (COP)
– 131.32-31 = confluence area of .50 retracement and expanded objective point (XOP)
– 130.45-42 = confluence area of .618 ret and objective point (OP)
In case the price breaks out of the flat to the upside the nearest targets will be Fibonacci retracements of 135.03-131.70, and expansions off 127.62-135.03-131.70 (daily A-B waves – royal blue), 131.70-133.75-132.32, 132.32.-133.62-132.84.
Resistances:
– 133.64 = contracted objective point (COP), reached already (!)
– 133.76 = .618 retracement
– 134.14 = objective point (OP)
– 134.37 = OP
– 134.94 = expanded objective point (XOP)
– 135.64 = XOP
Overbought/Oversold
The Detrended Oscillator is now oscillating around the zero with the peaks converging around the line. This is one more confirmation of the flat. Assuming that the med term trend is yet unclear it’s advisable to stand aside until the price gets out of the flat.
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