Large TF:
The rising wave dominating from the beginning of last year is developing according to the impulse scenario. Since the beginning of autumn, the last section has been developed in it, in which the first parts (A + B) have been completed.
Small TF:
The bullish wave of January 10 achieved strong resistance. In recent days, downward movement with strong reversal potential develops, which indicates the beginning of the correction.
Forecast and recommendations:
In the coming days, the dollar will mainly move in the lateral plane, to the lower border of the flat range. Further change is expected in the course and re-growth rate. Traders can use the described sequence of the motion algorithm, first making short-term purchases and then looking for signals to sell national currencies in the main pairs.
Resistance zones:
- 98.50 / 98.70
- 97.60 / 97.80
Support areas:
- 96.90 / 96.70
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