EUR/USD
For the major euro pair, the main vector of movement from the end of March is set by a bearish wave. In a larger model, this is a correction that forms a downward pennant on the chart. The last wave of the H1 scale, relevant for intraday trading, has been directed downwards since May 27. Since the end of last week, it has been forming an upward correction.
Forecast:
A preliminary target zone is located in the area of calculated resistance, where the current price rise is most likely to end. At the next sessions, repeated attempts of lifting, up to full completion are expected. When changing the movement vector, volatility can increase sharply, and a short-term puncture of the upper boundary of the resistance zone is not excluded.
Recommendations:
In the next sessions, euro purchases will be more promising, given the short-term price increase. In the area of the potential reversal zone, one should focus on the search for signal sales of the instrument.
Resistance zone:
- 1.1200/1.1230
Support zone:
- 1.1140/1.1110
GBP/USD
Since May 3, the chart of the British pound is dominated by a bearish trend. Its last unfinished section from May 21 sets the direction of intersessional trends of the pair. In the structure of this wave, the final correction segment (B) started on Friday.
Forecast:
Today, the expected scenario for the movement of the pair is the continuation of the price rise, with a more flat nature of the movements. The completion of the price growth and the formation of a reversal is most likely within the framework of the calculated resistance.
Recommendations:
In the next day, it is recommended to focus on the purchase of the tool. At the next trading session, there is a high probability of a "sideways". The expected rise is limited by the calculated resistance zone.
Resistance zone:
- 1.2690/1.2720
Support zone:
- 1.2620/1.2590
USD/JPY
Price trends in recent months fit into the algorithm of the bullish wave, leading the countdown from the beginning of the year. The downward motion vector defines the final part of the correction zigzag (B). Having reached the minimum required size by the beginning of May, last week the correction was extended downwards. The price is approaching the level of support on a large scale. The last section counts down from May 21.
Forecast:
The nearest potential reversal support zone may slow down the strengthening of the Japanese currency for some time. The counter price movement will have a weak upward vector, but the rise is expected to be no further than the calculated resistance zone. Return to the main vector of movement is likely at the end of the day.
Recommendations:
Buying the Japanese yen is premature. It is recommended to stay out of the market for the time of the price rise, and after reaching the reversal zone, start tracking the reversal signals to find the entry into short positions.
Resistance zone:
- 108.50/108.80
Support zone:
- 107.90/107.60
Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A-B-C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.
Note: The wave algorithm does not take into account the duration of tool movements over time.
