Large TF:
Over the past year and a half, the pair has steadily moved to the "north" of the chart. By the end of last year, the price reached the lower boundary of the powerful reversal zone, which caused the beginning of the oncoming wave.
Small TF:
The direction of the short-term trend is set by the bear wave design of December 28. The entire past month in its structure formed the correctional part (B). The rise is nearing completion.
Forecast and recommendations:
After a flat period, the price of the pair is waiting for a new round of decline. A preliminary calculation allows you to expect up to 5 price patterns down. Supporters of the international trade style are advised to track the signals of the sale of a major.
Resistance zones:
- 1.3400 / 1.3450
Support areas:
- 1.3120 / 1.3070
- 1.2860 / 1.2810
Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, incomplete wave is analyzed. 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