From the powerful support zone since September 7, a flat wave model is formed upward. It has a reversal potential that can change the direction of the short-term trend of the pair.
Wave pattern on the H1 chart:
The downward stretch of the wave in the older TF at October 22 took the place of correction (B).
Wave pattern on the M15 chart:
The decline that began on November 16 was in the H1 wave of the final part (C). Large counter kickbacks are not expected.
Recommended trading strategy:
Up to the target zone, a change in the motion vector is unlikely, as bears can use. Then it makes sense to start tracking reversal signals to search for entry into long positions.
Resistance zones:
- 1.1340 / 1.1390
Support areas:
- 1.1230 / 1.1180
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For the analysis, three main TFs are used. On every last part, the 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 while the dotted shows 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