Large-scale graphics:
Since January, the main trend direction is looking at the "south" of the chart. Towards the main trend in the last 3 months developing oncoming traffic.
The rising wave from October 5 formed a correction (B) in the larger wave structure.
The wave level of the decline that started on December 3 has a reversal potential. In due course all movement will pass to higher TF. In the coming days, a short-term flat rate rise is possible.
Forecast and recommendations:
In the coming weeks, a rather strong drop in the price of the major is expected. For all trading styles at the ends of oncoming kickbacks, it is recommended to look for signals to enter short positions.
Resistance zones:
- 0.7150 / 0.7200
Support areas:
- 0.7080 / 0.7030
- 0.6830 / 0.6780
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