Large-scale graphics:
The trend "Aussie" from the end of January forms a downward wave of daily scale. The movement structure does not demonstrate completeness. To the upper boundary of the nearest zone of probable completion, there are about 3 more price patterns.
Medium scale graphics:
The last wave for 2 months moved the price of the pair up, forming a correction in the model of the older TF. The scenario of continuation of a bull wave at a higher wave level is possible.
Small-scale graphics:
The price decline, which began on December 3, may be either an intermediate correction in the current bullish wave or the first section of the main bearish trend.
Forecast and recommendations:
In the nearest weekly period, against the background of the Christmas decline in activity on the market, a price rebound is expected from the settlement support zone. Trade transactions during this period carry a high degree of risk and are not recommended.
Resistance zones:
- 0.7170 / 0.7220
Support areas:
- 0.7070 / 0.7020
Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For analysis, 3 consecutive graphs are used. Each of them analyzes the last, incomplete wave. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure, the dotted - the expected movement.
Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!
The material has been provided by InstaForex Company - www.instaforex.com