The Overbalance analysis aims to identify three financial instruments, analyzed primarily on the daily/four-hour (D1/H4) timeframe. The analysis uses only the Overbalance methodology, which helps determine where a trend may continue or where it may reverse. Today’s analysis covers three instruments, evaluated solely in terms of 1:1 correction structures.
USDJPY
Since February 12, the USDJPY has been trading in a strong uptrend. Initially, the movement was controlled by a 1:1 corrective pattern with a range of approximately 140 pips; however, in mid-March, a deeper correction occurred, after which the market established a new high. As a result, the current largest corrective pattern has a range of approximately 240 pips. At this point, the key support level is 158.10, derived from the lower boundary of this pattern. As long as this level holds, the uptrend remains in place. A break below it, however, could open the way for a larger correction or even a trend reversal.
USDJPY – H4 chart. Source: xStation
NZDUSD
The NZDUSD pair has been trending downward since late January. We are currently seeing an upward corrective move. If the correction continues, the key resistance level remains at 0.5845, where the upper boundary of the 1:1 correction pattern is located. According to the Overbalance methodology, the downtrend remains in effect until this level is negated.
NZDUSD – H4 chart. Source: xStation
USDCHF
Since early January, USDCHF has been in a downtrend. However, an upward correction has been developing since late January, and its range has already exceeded smaller geometric patterns, including the 0.7902 level. Nevertheless, the price has failed to break through the key resistance at 0.8042, where the upper boundary of the largest corrective pattern is located. According to the Overbalance methodology, the downtrend remains in effect until this level is broken. The decline could accelerate after falling below the 0.7902 level, which is the lower boundary of the smaller geometric pattern. Conversely, a break above 0.8042 could lead to a shift to an uptrend.
USDCHF – H4 timeframe. Source: xStation
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
