Large scale graph:
The bearish wave has set the direction of the cross trend for the last year and a half. The coincidence of several factors at once such as the completeness of the wave structure, the achievement of strong support and the presence of a reversal pattern indicate a quick change in the trend course of the pair.
Medium scale graph:
The ascending segment of the chart, which began on January 3, forms the final part (C) in the waves of several TFs at once. This gives a domino effect when the wave level of movement increases without deep corrections.
Small scale graph:
A descending wave of January 17 in a larger model forms of intermediate pullback. The reduction potential is small and limited to the support area.
Forecast and recommendations:
Sales of cross-currency pair in the near future are unpromising. At the end of the downward movement, it is recommended to track the reversal signals to search for entry into long positions.
Resistance zones:
- 78.80 / 79.30
- 81.20 / 81.70
Support areas:
- 77.30 / 76.80
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A – B – C). Three consecutive graphs are used for analysis. Each of these 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 and the dotted exhibits 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