Wave pattern on the H4 chart:
A descending wave model on the chart of the pair is formed from the middle of July, correcting the previous portion of the daily scale trend.
Wave pattern on the H1 chart:
The bearish wave of October 4th develops in the lateral plane. In the structure of the wave, the middle part (B) is nearing completion. The upcoming downside potential (C) is limited to the calculated support.
Wave pattern on the M15 chart:
The rising wave from October 26 reached the lower boundary of the powerful resistance zone. Since it is only a correction in a larger wave, its completion is expected within the reversal section.
Recommended trading strategy:
In the coming weeks, increased volatility in the lateral plane is expected on the chart of the pair. Trading large areas of the schedule is recommended to refrain from trading and wait for the completion of the entire correction.
Resistance zones:
- 114.20 / 114.70
Support areas:
- 111.70 / 111.20
Explanations to 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