looks to have finished wave 3 of a larger Elliot wave
cycle on the daily timeframe
. After a wave 3 is a corrective pullback (wave 4) before a final wave 5. In this analysis we can see price made an impulse wave 1 then made a corrective pullback to the 61.8% to complete wave 2. Then another impulse wave up for wave 3 which has reached a critical resistance zone
confluent with a cluster of 3 Fibonacci levels which are 1) -61.8% (of the initial 61.8% retrace of wave 1), 2) 71.0% retrace of the swing high to swing low (yearly high and low), and 3) 127.2% of the swing high (X) to swing low (A). With a confluence of fib clusters in this area (as well as being very close to the round psychological 1.30) we have a high probability resistance zone
which should be our turning point to begin the next corrective wave 4. Profit targets for the short position are the 38.2% @ 1.26 & the 50%/61.8% fib cluster @ 1.25 (boxed area). The cluster at 1.25 is strong support and is most likely the best place to take profits. Once price begins to consolidate around this area and shows an implusive movement upward that will be our indication wave 4 is completed and we will look for a long position for wave 5. Will update after the wave 4 correction. This is for educational purposes only. This is in no way intended to be financial advice. I am not a financial advisor.