Simplified wave analysis. Overview of EUR / USD for February 18

Large TF:

In the bear trend that dominates the market since November last year, an upward wave structure has been formed. A preliminary calculation of the potential puts it in place of the correction.

Small TF:

Since January 10, the downward motion vector dominates on the chart. The structure forms a distinct zigzag (A + B + C). The price is approaching the potential reversal zone. Before the final pull-down, a rollback is possible.

Forecast and recommendations:

As for the flat price range, preparations for a price leap upwards are completed. Given the corrective nature of growth, it is premature to make investments. When buying, it is recommended to reduce the lot size.

Resistance zones:

- 1.1350 / 1.1400

Support areas:

- 1.1210 / 1.1160

Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, 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, 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!