EUR/USD
Analysis:
The trend direction of the pan-European currency has turned south on the price chart since the beginning of this year. The price has reached a strong large scale support. All last week the price has been pulling back up. The current wave level of this price rise is insufficient for a wave reversal.
Outlook:
In the next 24 hours, the pair's quotes are expected to move between the nearest counter direction zones. In the European session a downward vector is more likely. A sharp increase in volatility, with a brief break of the lower support zone boundary, is possible.
Potential reversal zones
Resistance:
- 1.1370/1.140
Support:
- 1.1300/1.1270
Recommendations:
Trading in the euro market today can only be profitable in individual trading sessions with fractional lots. Buying the instrument is more profitable.
USD/JPY
Analysis:
The dominant upward wave in the Japanese Yen chart since the beginning of the year has brought the major pair's quotations into a potential reversal zone of the Senior timeframe.
During the last one and a half months, the price formed a horizontal stretched plane. By the current day, its structure seems complete, but there are no formed reversal signals on the chart yet.
Outlook:
In the next day, the rate is expected to move in the price corridor between the opposing zones. After a possible pressure on the resistance zone, we can expect a change of vector and a downward move of the price. The calculated zones show the boundaries of the expected daily range.
Potential reversal zones
Resistance:
- 113.70/114.00
Support:
- 112.90/112.60
Recommendations:
It is safer to split the trading lot when making trades in the pair market today. Buying can be risky and is not recommended. Signals to sell are better monitored around estimated resistance.
GBP/JPY
Analysis:
A downward correction wave has been forming in the Pound/Yen cross-market since October 20. Yesterday an uptrend started from the upper boundary of the strong support, completing the correctional plane from November 26.
Outlook:
A smooth growth of the pair is expected in the next 24 hours in the range between the closest zones. On the European session a pullback is not excluded, not further than the support zone. The active growth phase is more likely to occur at the end of the day, or tomorrow. A breakout of the upper resistance zone is unlikely today.
Potential reversal zones
Resistance:
- 151.80/152.10
Support:
- 150.90/150.60
Recommendations:
On the cross chart today, short-term buying within the day from the support zone is possible. It is safer to reduce the trading lot.
GOLD
Analysis:
On the gold chart, the upward plane that started at the end of February continues to form. The bearish section from November 10 is not yet beyond the correction of the last part of the wave. The price has been sideways drifting in a narrow price corridor for the last decade.
Outlook:
A general sideways movement between the closest encounter zones is expected today. In the first half of the day, an upward vector is likely to complete. Then we can expect the formation of a reversal and the start of a downward price move.
Potential reversal zones
Resistance:
- 1800.0/1805.0
Support:
- 1775.0/1770.0
Recommendations:
Today trading in the gold market is only possible within individual trading sessions with small lots, in scalping style. Selling from the resistance zone seems safer.
Explanation: In simplified wave analysis (SVA), waves consist of 3 parts (A-B-C). The last unfinished wave is analyzed. The solid arrow background shows the structure formed. The dotted arrow shows the expected movements.
Attention: The wave algorithm does not take into account the duration of the instrument movements over time!
