Simplified wave analysis and forecast for EUR/USD and AUD/USD on May 17

EUR/USD

The last unfinished wave on the daily scale of the euro is descending, from March 20. The wave is flat, correctional. Its shape forms a descending pennant. The structure today looks formed, which indicates the possibility of its early completion. After a weekly decline, the price reached the upper limit of the strong support zone.

Forecast:

The extremes of the current wave of the daily TF chart formed the boundaries of the channel, in the lower edge of which the price rested. There is a high probability of the formation of a reversal in the flat and the beginning of the rise of the pair to the upper boundary of the price corridor.

Recommendations:

At the next trading sessions, a flat "sideways" in a narrow price corridor is expected on the euro chart. Trading in such conditions is quite unpredictable. Purchases are possible on the smallest TF lot. Given the current wave of the bearish vector, sales of the pair from the resistance zone will be more promising.

Resistance zones:

- 1.1240 / 1.1270

Support zones:

- 1.1170 / 1.1140

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AUD/USD

The direction of the short-term trend of the Australian in the main pair is given by the downward wave of April 17. The wave has a pronounced impulse form. It is located at the end of a larger bearish trend that began in January, forming the final part (C).

Forecast:

A bullish reversal pattern was formed on the smallest TF of the pair. Within the last section of the wave, a short-term upward rollback is expected today. Return to the main vector of movement is possible by the end of the day.

Recommendations:

Purchase today is irrelevant due to their small potential. It is recommended to wait until the upcoming correctional section is completed and look for reversal signals to enter the instrument sales in the area of the calculated resistance zone.

Resistance zones:

- 0.6910 / 0.6940

Support zones:

- 0.6830 / 0.6800

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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.

The material has been provided by InstaForex Company - www.instaforex.com