The Overbalance analysis aims to identify three financial instruments, analyzed 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.
USDJPY
Since April last year, USDJPY quotes have been moving in an upward trend, but yesterday’s session saw an attempt to negate the largest correction in this trend. The price is currently below the support level at 152.93, which, according to the Overbalance methodology, increases the risk of further declines and, in a broader perspective, may even lead to a trend reversal.
Locally, the chart also shows a 1:1 downward pattern. In the event of a corrective upward surge, the key resistance level remains at 154.00, resulting from the upper limit of this geometry. Only if this level is negated could it indicate that the earlier breach of support at 152.93 was false and that the price is returning to an upward trend. At this point, however, the baseline scenario remains the risk of a further downward movement.
USDJPY – H4 interval | Source: xStation5
EURUSD
The EURUSD currency pair has risen sharply in recent days, allowing the price to stay above the 1.2000 level. In the event of a correction, from the point of view of the Overbalance methodology, the key support level remains 1.1850, which is the lower limit of the largest correction in the upward impulse that began in November.
In the shorter term, it is also worth paying attention to the level of 1.1983, which acts as local support, resulting from the lower limit of the smaller 1:1 pattern. As long as both levels remain intact, the baseline scenario remains an upward trend.
EURUSD – H4 interval | Source: xStation5
NZDUSD
The NZDUSD currency pair is moving in a strong upward trend. Analyzing the chart solely from the perspective of the Overbalance methodology, two significant support levels can be identified.
The first, short-term support is at 0.5992 and results from the lower limit of the local 1:1 pattern. The second, much more significant support is at 0.5910, where the lower limit of the larger 1:1 geometry runs. Only a rejection of this level could pave the way for a change in sentiment. For now, however, the prevailing scenario remains a continuation of the uptrend.
NZDUSD – H4 interval | Source: xStation5
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