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.
GBPAUD
Since last November, the GBPAUD currency pair has been trading in a downtrend; however, in mid-March, the upper boundary of the broad 1:1 pattern was broken at the 1.8990 level, which may indicate a shift in sentiment toward an uptrend. Currently, the 1.8975 level should be considered key short-term support, as it marks the lower boundary of the local 1:1 bullish pattern. According to the Overbalance methodology, as long as this level holds, further expansion of the upward movement is possible. Conversely, a drop back below 1.8990 could signal a resumption of the downward trend.
GBPAUD – H4 timeframe. Source: xStation
AUDNZD
The AUDNZD exchange rate has been in an uptrend since April of last year. Due to the prolonged period without a major correction, the recent downward move is similar in magnitude to previous corrections, allowing us to identify support at the 1.1730 level, where the lower boundary of the 1:1 pattern is located. According to the Overbalance methodology, as long as this level holds, the uptrend remains in effect.
AUDNZD – H4 timeframe. Source: xStation
EURAUD
Since last October, the EURAUD pair has been trading in a downtrend; however, in recent days, the 1.6545 level has been broken, which may suggest the start of an upward correction or even a trend reversal. According to the Overbalance methodology, as long as the price remains above this level, the base case scenario remains a continuation of the uptrend. Conversely, a return below 1.6545, as well as a break below the 1.6506 level—where the lower boundary of the local 1:1 uptrend pattern lies—could signal a return to the downtrend. For now, the base case remains an upward correction.
EURAUD – H4 timeframe. Source: xStation
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