The main vector of price movement on the daily scale of the chart is directed downwards. Since November of last year, the oncoming wave is formed, the potential of which does not exceed the level of correction.
Medium scale graphics:
From January 10, a downward wave zigzag develops on the TF H1 chart. In a larger model, it corrects the rising wave that started earlier.
The wave level of the bearish wave of January 31, which increased in the last week in a larger structure, puts it in place of the final part (C).
Forecast and recommendations:
The expectations of the beginning of the reversal last week did not materialize, which is caused by the lengthening of the current wave down. Below are 2 control support zones, in one of which you can count on a change of course. Prior to the reversal signals, trade deals are not recommended.
– 1.1480 / 1.1530
– 1.1330 / 1.1280
– 1.1210 / 1.1160
Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. Each of them analyzes the last, incomplete wave. 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, the dotted – 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