Large-scale graph:
The perspective vector of price movement coincides with the last bullish wave construction of May 29. In the wave structure, the final part (C) is not completed.
Medium-scale graph:
Starting from October 26, the price moves mainly in the lateral direction. In this case, the final part (C) is formed in the structure of the higher wave from this time.
Small-scale graphics:
From December 4, the price began to form the next upward wave zigzag. After the completion of the bearish pullback, the final part will follow. In this case, there is a high probability of a domino effect with the price increase going up several wave levels at once.
Forecast and recommendations:
In the upcoming weekly period, the probability of a price surge on several figures increases at once, due to the coincidence of the structures of models of different scale. It is recommended to track buy signals. A temporary guide can serve as the release of important data in the calendar of economic news.
Resistance zones:
- 131.20 / 131.70
Support areas:
- 128.00 / 127.50
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