The rising wave, dominant on the cross pair chart, by the beginning of February this year has reached the lower limit of the wide reversal zone of a large scale. Contact quotations of the pair with a strong level of resistance caused a change in the direction of price movement.
Analysis of the wave structure shows that the final part of the previously has begun the formation of hidden correction. Calculation of the preliminary target zone indicates a high probability of a repeated downward course of the price to the area of the 144th price figure. The wave has the form of a pronounced zigzag.
In the coming trading sessions, the ascending phase of the movement is expected to end. The most anticipated end of the climb is the resistance zone. Next, the price of the pair is waiting for a change in the exchange rate to settle in the support zone.
Boundaries of resistance zones:
- 150.80 / 151.30
Boundaries of support zones:
- 147.20 / 146.70
Explanations of the figures:
For simplified wave analysis, a simple waveform is used that combines 3 parts namely A, B, and C. All types of correction are created and most of the impulses can be found in these waves. Every time frame is considered and the last incomplete wave is analyzed.
The areas marked on the graphs indicate the probability of a change in the direction of motion has significantly increased as calculated in the areas. Arrows indicate the wave counting following the technique used by the author. A solid background of the arrows signifying the structure has been formed while the dotted one means the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the movement of tools in time. The forecast is not a trading signal! To conduct a bargain, you need to confirm the signals used by your trading systems.
