Review and forecast for USD / CHF
The wave chart of the major pair dollar/ franc is best shown by the daily timeframe. The decline since December 2016 forms the final part of the corrective phase of the movement, the beginning of which has been recorded since January 2015.
In the previous months, the price was actively moving downward and led the quotations into the potential reversal zone. The analysis shows that the structure of the entire bearish wave reaches the minimum acceptable percentage. Formally, the entire wave can be completed already at the current levels. But before a clear reversal signal appears, the option for the main scenario is the continuation of the downward trend.
Today, the price of the pair is expected to move in the side corridor which is in between the counter calculated zones. Reduction during the first part of the day towards the end of the day should be changed as the ascending trend.
Boundaries of resistance zones:
- 0.9410 / 40
Boundaries of support zones:
- 0.9340 / 10
EUR / JPY outlook and outlook
The quotes of the cross pair EUR/JPY since June 2016 continue their ascent in a corrective zigzag trend. The price has come very close to the lower boundary of a wide zone of potential reversal and formed around a strong level in the largest scale. Analysis of the structure of the wave indicates its incompleteness. The formation of the monthly correction indicates the fresh start of a new phase of the upward trend.
The price reduction for February forms the final part of the hidden downward wave. The preliminary nearest exit zone is located approximately in 2 price figures below the current rate.
In the next trading session, an upward rebound is highly expected. The mood of the movement may extend throughout the day. By the end of the day, there is a greater chance of a change in the direction and the beginning of a price reduction.
Boundaries of resistance zones:
- 134.30 / 60
Boundaries of support zones:
- 133.30 / 133.00
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.
