EUR/USD
Analysis:
On the chart of the European currency from the beginning of the year, a downward plane is formed. In a larger wave pattern it takes the place of correction. The wave structure looks completed. The price has reached the upper limit of the strong potential reversal zone of a larger TF. There are no signals of an imminent reversal yet
Forecast:
In the current day, it is possible to expect attempts of euro's price growth and pressure on the resistance zone. By the end of the day, reversal probability and start of price decrease is high. The potential for a likely daily move down is indicated by the calculated support.
Potential reversal zones
Resistance:
- 1.1800/1.1830
Support:
- 1.1720/1.1690
Recommendations:
Buying the euro is risky until clear signals of the trend change. It is recommended to monitor the sell signals in the area of the resistance zone. It is safer to reduce the trading lot.
USD/JPY
Analysis:
From the end of March, a downward correction structure within the main upward wave has been formed on the chart of the Japanese yen. So far, the quotes have formed a shifting plane, not yet completed. For the whole last month, the upward price rebound within the last section (C) has been forming.
Forecast:
In the next day, the price movement between the nearest zones, mainly with the ascending vector is expected. At the European session a short-term pressure on the support zone is possible.
Potential reversal zones
Resistance:
- 110.40/110.70
Support:
- 109.70/109.40
Recommendations:
While trading flat, it is safer to split the trading lot. At the nearest sessions purchases from the support area are possible.
USD/CAD
Analysis:
On the chart of the Canadian dollar, in the short term the direction of price fluctuations is set by the algorithm of the downward wave from July 19. At the moment, its structure is similar to an unfinished stretched plane. An intermediate rebound is coming to an end.
Forecast:
In the next day, the upward section is expected to be completed. Then it is possible to watch for a reversal formation and the beginning of price decrease. Calculated support shows the lower limit of the expected daily range.
Potential reversal zones
Resistance:
- 1.2700/1.2730
Support:
- 1.2620/1.2590
Recommendations:
Today, purchases of the Canadian dollar are risky and can lead to losses. In the area of the calculated resistance it is recommended to monitor all emerging signals for selling the instrument.
GBP/JPY
Analysis:
On the chart of the pound/yen cross pair from July 19 the beginning of a new section of the uptrend is formed. The wave structure proceeds to prepare for an active price increase. Since the beginning of the week, a downward price rebound as part of the final part has been forming.
Forecast:
In the coming day, it is possible to watch for the completion of the downward correction. At the end of the day or tomorrow, a reversal formation and the beginning of an active growth phase is expected. The resistance zone shows the upper limit of the expected daily range.
Potential reversal zones
Resistance:
- 151.20/151.50
Support:
- 150.20/149.90
Recommendations:
There are no conditions for selling in the cross market today. In the area of calculated support it is recommended to track all emerging signals for selling the instrument.
Explanation: In the simplified wave analysis, (UVA) waves consist of 3 parts (A-B-C). The last unfinished wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted background shows the expected movements.
Note: The wave algorithm does not take into account the duration of the instrument's movements in time!
