Wave pattern of the H4 chart:
As part of a larger daily wave on the graph since July 19, a downward correction is formed. In its appearance, the wave structure is more like a stretched plane. The first 2 parts (A-B) are completely formed.
Wave pattern of the H1 chart:
In the structure of the descending wave of October 3, the first part (A) was formed and the middle part (B) is nearing completion.
Wave pattern of the M15 chart:
The ascending part of the price movement of October 15 has a small growth potential. The price is at the lower boundary of the resistance zone.
Recommended trading strategy:
The pair is not recommended to purchases next week. In the area of the reversal zone, it is suggested to track the signals selling the instrument.
Resistance zones:
- 112.70 / 113.20
Support areas:
- 110.70 / 110.20
Explanations of the figures:
A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (A-B-C). Three main timeframes are used for the analysis. The last incomplete wave for every timeframe is analyzed. Zones show the calculated areas with the greatest probability of a reversal.
Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.
Note: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.
The material has been provided by InstaForex Company -
www.instaforex.com