Large scale graph:
From the end of May of the current year, the bullish wave structure unfolds on the chart, designed to return the direction of the main trend to the upward course.
Medium scale graph:
Since October 26, the flat mood dominates on the chart, making it difficult to identify wave structures. This is necessary to increase the wave level to the required scale.
Small scale graph:
The downward wave of December 13 has a small potential, completing a larger structure. The price is within the boundaries of the pivot zone of a large timeframe.
Forecast and recommendations:
For all trading styles, the most promising is the search for reversal signals to enter long positions. The probability of coincidence in time of the beginning of active movements with the release of a block of important economic news is high.
Resistance zones:
- 131.20 / 131.70
Support areas:
- 127.70 / 127.20
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