The Overbalance analysis aims to identify three financial instruments, analysed exclusively on a four-hour interval (H4). The analysis uses only the Overbalance methodology, which allows us to determine where the trend may continue or where it may change.
Today’s analysis covers three instruments, assessed exclusively in terms of the 1:1 correction structure.
EURAUD – H4 interval
The EURAUD currency pair quotes on the H4 interval negated the local 1:1 pattern, which led to the expansion of the upward correction. If the current sentiment persists, the price may move towards 1.7218, where the upper limit of the larger 1:1 geometry is located. From this area, it is possible to start another downward impulse. On the other hand, a permanent negation of this level would open the way for even a trend reversal.
EURAUD – H4 interval Source: xStation5
EURUSD – H4 interval
As expected, the EURUSD currency pair broke through the local 1:1 pattern and then tested it from the other side, after which the market made a larger downward correction. Currently, the price is testing key support at 1.1850, resulting from the lower limit of the large 1:1 pattern.
If there is a demand reaction in this area, there will be a chance to establish a new peak. However, a rejection of the 1.1850 level could lead to a downward trend reversal.
EURUSD – H4 interval Source: xStation5
GBPUSD – H4 interval
The GBPUSD currency pair continues to move in an upward trend on the H4 interval, but the latest correction is more extensive than previous ones, which increases the risk of breaking through the key support level at 1.3690.
If the price falls below this level and simultaneously negates the 127.2% ratio, this will mean a negation of the 1:1 pattern, which, according to the Overbalance methodology, may lead to a change in short-term sentiment to bearish. Only a sustained return above 1.3690 will reopen the way to a new high.
GBPUSD – H4 interval Source: xStation5
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