Large TF:
On the weekly scale of the main euro pair chart from the beginning of last year, the bearish wave dominates. The model is not complete. The preliminary target zone is more than 5 figures below the current level.
Small TF:
From November, the price of the pair moves up, correcting the last trend section of the main wave. The first phase is completed in the structure; the middle part of the wave is nearing completion. The price has reached the upper boundary of the support zone. Beginning 2 days ago, the price rise claims to start the reversal design.
Forecast and recommendations:
The preparation of the instrument for a course change is almost over. The period of price decline may be replaced by the growth phase already this week. The turnaround time often correlates with the outputs of the economic data block. Until the end of the month, a "bullish" attitude of transactions is recommended.
Resistance zones:
- 1.1390 / 1.1440
Support areas:
- 1.1230 / 1.1180
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