Large-scale graphics:
For the past year, the price of the pair has moved down, forming a downward wave. Its structure is not complete. In recent weeks, the oncoming wave is formed.
Medium scale graphics:
Beginning January 2, the ascending part of the chart has a reversal potential. Over time, the scale of the movement will move to a higher level.
Small-scale graphics:
Since January 11, the price is adjusted, forming the middle part (B) in a larger wave.
Forecast and recommendations:
On the chart of the pair, a classical impulse construction is developing, preceding the change in the short-term trend. In the coming days, conditions will be created for entering long positions.
Resistance zones:
- 0.7320 / 0.7370
Support areas:
- 0.7120 / 0.7070
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