This currency pair is developing a counterwave against 1.0182-0.9539. On smaller timeframes this movement consists of A-B-C subwaves (colored red) with subwave C developing. To confirm wave C the price has to break above 131.74. Another variant – this wave remains corrective B and the price makes an impulse down.
So far the targets above the current price level are Fibonacci retracements of 134.19-129.33, 129.43-131.74, and expansions off 129.33-131.74-129.43, 129.43-130.64-129.51.
Resistances:
– 130.72 = objective point (OP)
– 130.86-92 = confluence area of .382 retracement and contracted objective point (COP)
– 131.47 = expanded objective point (XOP)
– 131.84 = OP
– 132.33 = .618 ret
However if the price reverses down to continue the larger wave down, the nearest supports will be Fibonacci expansions off 134.19-129.33-131.74, and 131.74-129.43-130.64.
Supports:
– 129.21 = COP
– 128.74 = COP
– 128.33 = OP
Overbought/Oversold
The pair is trading in a flat therefore for short term trades any – OB or OS – reading can be used to consider entering the market. Fib resistances around 130.26-31 can be used to go short since they coincide with oberbought reading of the indicator.
More analysis at instaforex.com