Large TF:
After the completed bearish trend with the beginning of the current year, the direction of the short-term trend of the cross is set by the upward wave. In its structure in February, the correctional part (B) was completed.
Small TF:
The price rise that began on February 8 in the larger model gave rise to the final phase of the movement (C). Before further appreciation of the rate from current price values, an intermediate pullback is possible.
Forecast and recommendations:
A consolidation period is expected on the cross chart this week. Reducing further settlement support is unlikely. It is recommended to use price pullbacks to strengthen long positions in the market of the pair.
Resistance zones:
- 128.10 / 128.60
Support areas:
- 126.30 / 125.80
Explanatory notes 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