20.02.201808:17 Forex Analysis & Reviews: Trade review for February 20 by simplified wave analysis

Overview and forecast for USD / CHF

Quotes of the major pair of Swiss currency continue to move bearish rate, set at the end of 2016. The price has come very close to the upper limit of the next potential turn area, where the probability of a change in the direction of the price movement increases sharply.

It is not about changing the trend. While it is possible to count on the corrective lifting within the framework of the last section of the main wave.

Today, the price is expected to move in the side corridor. In the first half of the day, price growth should be completed within the framework of the calculated resistance. Towards the end of the day, the chance of changing the motion vector and the course of the price downwards increases. The support area demonstrates the expected range of the daily course of the pair.

The boundaries of resistance zones:

- 0.9350 / 80

The boundaries of support zones:

- 0.9260 / 30

Overview and forecast for EUR / JPY

A large upward wave of the instrument led the cross quotes to contact with the lower boundary of the preliminary target zone. The contact prices with a powerful level triggered a change in the course of traffic. The analysis of the wave structure of the last months of the chart shows the formation of the final part of the hidden bear correction. The preliminary calculation of the probable move down gives about 2 price figures before the completion of the whole wave.

The most likely direction of the next day's movement should be a downward course. The European session does not exclude a short-term price increase, not beyond the estimated resistance zone. In the area of the nearest support zone, the pair's downward stroke may be stalled for some time.

The boundaries of resistance zones:

- 132.60 / 90

The boundaries of support zones:

- 131.80 / 50

- 131.20 / 130.90

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.