GBP/USD
Brief Analysis:
On July 14, a downtrend started on the chart of the main British pound pair. On a larger time frame, this section completes a shifting plane. Since early October, the price has formed an upward correction in the wave structure. The price approaches the lower boundary of a powerful potential reversal zone. There are no immediate reversal signals on the chart.
Forecast for the week:
At the beginning of the upcoming week, the pair's price may face pressure on the resistance zone. A short-term breakthrough of its upper boundary is included. Further, a reversal and a downward price movement are expected. The support zone demonstrates the most likely lower boundary of the pair's weekly range.
Potential Reversal Zones:
Resistance:
- 1.2700/1.2750
Support:
- 1.2500/1.2450
Recommendations:
Buys: possible with a limited lot during separate sessions. The calculated resistance limits the potential.
Sells: may become the main direction of transactions after the appearance of corresponding signals around the resistance zone on your used trading systems.
AUD/USD
Brief Analysis:
On the daily chart scale of the Australian dollar, the descending trend that started in February continues. Over the past month and a half, a correction of the last part of the main wave has been forming from the upper boundary of a powerful reversal zone. Its structure looks complete, but the chart has no reversal signals.
Forecast for the week:
This week, the pair's quotes are expected to move within the price corridor between the nearest zones of opposite directions. In the coming days, pressure on the resistance zone is likely. A short-term breakthrough of the upper boundary of the zone is not excluded. The resumption of the price decline can be expected closer to the weekend.
Potential Reversal Zones:
Resistance:
- 0.6590/0.6640
Support:
- 0.6450/0.6400
Recommendations:
Sells: can be used with a reduced lot during separate sessions.
Buys: there will be conditions for them once confirmed reversal signals appear in the support zone.
USD/CHF
Brief Analysis:
On the chart of the main Swiss franc pair, an ascending wave zigzag has been developing since mid-July. In a larger descending wave, it occupies the place of a full-fledged correction. In the structure of this wave over the past month and a half, the price formed the middle part (B).
Forecast for the week:
At the beginning of the week, continued pressure on the support zone is highly likely. A short-term breakthrough of its lower boundary cannot be ruled out. Further, the price awaits a reversal and a resumption of the course's growth. The resistance zone shows the upper boundary of the expected weekly range.
Potential Reversal Zones
Resistance:
- 0.9070/0.9120
Support:
- 0.8790/0.8740
Recommendations
Sells: Carry a high degree of risk and may lead to losses.
Buys: Recommended for trading after the appearance of corresponding signals in the support zone.
EUR/JPY
Brief Analysis:
The ascending trend continues on the weekly chart scale of the euro against the Japanese yen cross. The price is approaching the lower boundary of a powerful potential reversal zone on the largest time frame. Since November 15, quotes have been moving sideways, forming a correction of the last segment of the chart. The structure of this movement does not indicate completion.
Forecast for the Week:
In the next couple of days in the cross-market, one can expect the continuation of the overall sideways movement, predominantly with a downward vector. A reversal is expected in the support zone. Increased volatility and an active phase of price growth are likely closer to the weekend.
Potential Reversal Zones:
Resistance:
- 164.60/165.10
Support:
- 162.30/161.80
Recommendations
Sells: Possible with a reduced lot within intraday, potentially moving to the support zone.
Buys: There will be conditions for them once confirmed reversal signals appear in the support zone.
EUR/GBP
Brief Analysis:
The short-term trend of the euro/British pound pair is upward. In a larger wave structure, this segment takes the place of a correction. The wave structure at the time of the analysis does not indicate completion.
Forecast for the Week:
The price will continue to move around the support zone in the next couple of days. Further, the formation of a reversal and the resumption of the bullish sentiment of the cross can be expected. The resistance zone demonstrates the upper boundary of the maximum possible weekly range of the pair.
Potential Reversal Zones:
Resistance:
- 0.8820/0.8870
Support:
- 0.8660/0.8610
Recommendations
Buys: Will become relevant for trading after the appearance of reversal signals on your trading systems.
Sells: There will be no conditions for such transactions next week.
US Dollar Index
Brief Analysis:
The trend direction of the index is set by a bullish wave from July 14. The structure of the descending correction to the present looks complete. The instrument's rate has reached the upper boundary of strong support. Since November 21, the index quotes have formed a windy movement with reversal potential. It will begin a new segment of the trend's main wave if confirmed.
Forecast for the Week:
The index quotes will continue to move along the support zone in the next few days. A reversal and resumption of growth are likely closer to the weekend. The resistance zone demonstrates the upper boundary of the weekly range of the instrument.
Potential Reversal Zones:
Resistance:
- 104.10/104.30
Support:
- 103.10/103.90
Recommendations
For purchases of national currencies in major pairs, there are no conditions. Sales may be recommended in majors after the appearance of confirmed reversal signals in the support zone and the beginning of the dollar's rate rise.
Note: In Simplified Wave Analysis (SWA), all waves consist of 3 parts (A-B-C). On each time frame, the last unfinished wave is analyzed. Dotted lines indicate expected movements.
Attention: The wave algorithm does not consider the duration of instrument movements over time!
