Large TF:
For the past year, the price of the Australian major has moved down. Analysis of the trend wave shows that the price growth of recent months should take the place of correction in the structure.
Small TF:
The bullish wave started on January 3. The wave has a reversal potential. To date, it is nearing completion of the middle part of the structure (B). A preliminary zone of probable completion has been reached, but no change in heading signals has yet been formed.
Forecast and recommendations:
The period of flat lull may be replaced by the beginning of the price increase already in the coming week. Until the end of the month, a general uptrend is expected, which supporters of the "bullish" strategy can use. Before opening buy orders, you must wait for confirming signals from the market.
Resistance zones:
- 0.7340 / 0.7390
- 0.7180 / 0.7230
Support areas:
- 0.7050 / 0.7000
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 your trading systems!
The material has been provided by InstaForex Company - www.instaforex.com