The trend direction indicates a descending wave based on the daily chart of the instrument from the end of 2016. The current wave level allows classifying this movement towards the correction of the previous price hike. However, further expansion of the structure through the downward wave will require the revision of the existing wave pattern. The wave structure clearly forms a zigzag pattern. At the same time, there were no signals for reversal that has been generated.
The counter price movement in the past two months forms a rollback within the final part (C) of the main wave. The upward movement has not been completed so far, but it shows little potential for further growth.
In the following days, the completion of the current upward trend can be expected. Within the framework of the resistance zone, the reversal and the pair's price are predicted to fall. The support area shows the lower boundary of the expected weekly major range.
Boundaries of resistance zones:
- 107.80 / 108.30
Boundaries of support zones:
- 105.70 / 105.20
Explanations to the figures: For simplified wave analysis, the simplest type of wave is used in the form of a zigzag, combining 3 parts (A; B; C). Of these waves, all kinds of correction are composed and most of the impulses. At each time frame, the last, incomplete wave is analyzed.
The areas marked on the graphs are indicated by the calculation areas, where the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the structure formed, the dotted one indicates the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a trade transaction, you need to confirm the signals of your trading systems.
* The presented market analysis is informative and does not constitute a guide to the transaction.
