Large TF:
Over the past year, the downstream exchange rate has remained the main focus of the Aussie price movement. The wave structure indicates that the oncoming traffic of the last months will take the place of correction.
Small TF:
The rise in prices that began on January 3 has a high enough potential to continue. The February price decline corrects the first phase of the bull wave. The price has reached strong support.
Forecast and recommendations:
Preparations for the price breakout of the flat corridor of recent months are almost complete. Signal immediate reversal on the chart has not yet formed. Supporters of the international trade style are advised to track opportunities to enter long positions.
Resistance zones:
- 0.7340 / 0.7390
Support areas:
- 0.7050 / 0.7000
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