This currency pair is developing corrective wave B of the medium term uptrend (colored magenta in the chart). Wave A is 0.9651-1.0182 and its .618 retracement (0.9854) has been reached by the price. More targets below the current level are Fibonacci expansions off 1.0182-0.9974-1.0091, 1.0091-0.9952-1.0002.
– 0.9863-54 = confluence area of objective point (OP) and .618 retracement, reached already by the price (!)
– 0.9777 = expanded objective point (XOP)
– 0.9754 = XOP
In case the price reverses up the nearest resistances will be Fibonacci retracements of the wave down starting from 1.0091 – wave not developed yet.
Assuming that the medium term trend is dow it is preferable to open shorts on recovery. Since there’s no retracement in sight now it’s better to stand aside until a corrective wave reveals itself.
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