Simplified wave analysis of EUR / USD for February 4

Large-scale graphics:

The downward wave dominating on the euro chart has been undergoing correction in recent months. A preliminary calculation of the target zone gives the probability of a general price reduction to 7 price patterns.

Medium scale graphics:

The rising wave of November 12 has a complex structure, forming as an ascending flat channel.

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Small-scale graphics:

Started on January 24, the rising wave completes the bullish construction of a larger TF. A preliminary calculation shows the maximum size of elongation to the upper zone of resistance.

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Forecast and recommendations:

The period of strengthening the price of the euro is temporary, but the trend will be relevant in the coming weeks. Supporters of intersessional trade can take advantage of this by opening purchases at the end of each pullback.

Resistance zones:

- 1.1740 / 1.1790

- 1.1420 / 1.1370

Support areas:

- 1.1420 / 1.1370

Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. 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