Large-scale graph:
The direction of the "Aussie" long-term trend from January of this year looks at the "south" of the chart. The wave is going through a correction phase, after which the trend will continue.
Medium-scale graph:
From October 5, the price will form an upward wave. At the time of analysis, the structure of the wave looks complete and the price has reached the estimated completion zone.
Small-scale graph:
Beginning December 3, the downward wave has a high enough wave level to give rise to a larger reversal pattern. The support zone is expected to rebound, which will clarify the current wave pattern.
Forecast and recommendations:
There is a high probability of the whole wave of correction to be completed and the onset of the active depreciation of the pair. Trades are not recommended until confirmation of the reversal.
Resistance zones:
- 0.7350 / 0.7400
Support areas:
- 0.7200 / 0.7150
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For the analysis, three main TFs are used. On every last part, the 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 while the dotted shows 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