Large-scale graphics:
The short-term trend of the dollar index since February last year has been the top. The wave structure is incomplete. Reached a powerful level of resistance.
Medium scale graphics:
From November 11, dollar quotes form a bearish wave, the potential of which is close to exhaustion. In a larger model, the plot took the place of an intermediate correction. Reached upper bound of the target zone.
Small scale graphics:
From January 10, the ascending segment is formed on the graph, which potentially could be the first part of the reversal construction.
Forecast and recommendations:
The weakening of the dollar is temporary. In the coming weeks, the current wave should be fully completed. The reversal of the vector of movement of the dollar will lead to the beginning of an active decline in the rates of national currencies in the major pairs.
Resistance zones:
- 96.90 / 97.10
Support areas:
- 95.40 / 95.20
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.
Attention: 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