This analysis from the Overbalance series aims to identify three financial instruments, analyzed primarily on the daily/four-hour (D1/H4) timeframe. The analysis relies solely on the Overbalance methodology, which helps determine points where a trend may continue or where a reversal might occur.
Today’s analysis covers three instruments, evaluated solely in terms of 1:1 correction structures.
AUDUSD
The AUDUSD pair has been in an uptrend for quite some time, and recent corrections have been nearly identical. During the March 13 session, the price rebounded from support at the 0.6992 level, which corresponds to the lower boundary of a smaller 1:1 geometric pattern. According to the Overbalance methodology, as long as this level holds, the uptrend remains in effect. Even in the event of a deeper correction, attention should be paid to the 0.6905 level, where the lower boundary of the largest corrective pattern within the uptrend that has been ongoing since last April is located. Only a sustained break below this level could lead to a shift in the balance of power on the chart. For now, the base case scenario remains a continuation of the uptrend.
AUDUSD – H4 chart. Source: xStation
GBPJPY
GBPJPY prices have recently undergone a significant correction, but since mid-February we have been observing a local uptrend. During this uptrend, there has already been one major correction of approximately 300 pips, marked by a green rectangle. If the current correction were to have a similar range, key support would be at the 210.20 level. Only a sustained break below this level could lead to further declines. For now, however, the base case scenario remains an uptrend.
GBPJPY – H4 timeframe. Source: xStation
USDJPY
Since February 11, we have observed a strong upward trend in the USDJPY currency pair. Importantly, recent corrections have been nearly identical, as indicated by the green rectangles on the chart. According to the Overbalance methodology, as long as the 158.41 level is not broken, the uptrend remains in place and a continuation of the move to higher levels is possible
USDJPY – H4 chart. Source: xStation
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