Large TF:
Established over the past 2 years, the trend moved the quotes of the cross down. By the beginning of this year, strong support of large scale was reached, which caused the beginning of the oncoming phase of the movement.
Small TF:
The bullish wave of January 3 in the larger wave will take the place of correction. All last month, the price has formed the basis of the final wave phase. After the completion of the intermediate correction, the uptrend of the pair will be restored.
Forecast and recommendations:
The flat side cross quotations can last up to next week. Sales are risky. When the price reaches the lower boundaries of the corridor, it is recommended to pay attention to the signal to buy the instrument.
Resistance zones:
- 81.40 / 81.90
- 79.70 / 80.20
Support areas:
- 78.30 / 77.80
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