According to wave count this currency pair is developing corrective wave to the upmove 0.9462-0.9749. In caset 0.9749 is broken to the upside we’ll have wave C of the same degree developing (daily – colored royal blue). If this scenario unfolds the nearest resistances will be Fibonacci expansions off 0.9462-0.9749-0.9541, and 0.9541-0.9725-0.9693.
– 0.9807 = contracted objective point (COP)
– 0.9828 = objective point (OP)
If the price reverses to the downside the nearest supports will be Fibonacci retracements of 0.9541-0.9725.
– 0.9655 = .382 retracement
– 0.9633 = .50 ret
– 0.9611 = .618 ret
The Detrended Oscillator has returned back to the zero level after peaking at both sides. The expanding peaks confirm greater volatility of the market. Assuming that the longer-term trend is still up it’s preferable to seek for bottoming signals when the price hits a Fibonacci support or gets into the oversold area – 30-40 pips to go.
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