This currency pair is now trading in the flat, limited by 130.80-133.29. The break out of the flat will show the direction of the impulsive wave C of the intermediate trend. According to wave count the intermediate trend is moving down, however, considering the depth of the retracement we may well see its reversal.
The targets of the downside movemement are Fibonacci retracements of 130.80-133.29 and expansions off 135.80-131.42-133.71, 133.71-130.80-133.29.
Price targets below the current level:
– 132.34 = .382 retracement
– 132.06 = .50 ret
– 131.75 = .618 ret
– 131.49 = contracted objective point (COP)
– 130.38 = objective point (OP)
– 129.33 = OP
In case the price keeps moving to the upside the nearest targets will be Fibonacci retracements off 135.80-130.80:
– 133.30 = .50 ret
– 133.89 = .618 ret
– 134.62 = .764 ret
Overbought/Oversold
The Detrended Oscillator is slightly above the zero level. However, assuming that the prevailing trend is up (see the deep retracement up) it’s better to wait for a retracement to 132.34 Fib node to search for a reversal signal that would mean a buy.
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