Simplified wave analysis and forecast for EUR/USD and AUD/USD on May 22

EUR/USD

For the short-term scale of the euro from March 20, the direction of movement is set by a downward wave. Its latest plot counts from May 13. In the wave, the correctional part of the movement (B) of the wrong kind is formed. Yesterday's rise completed its structure. The subsequent bearish segment of the chart has a high wave level.

Forecast:

In the next trading session, a general flat mood is expected. The formation of a reversal pattern will occur in a narrow price corridor between the meeting zones. In the American session, volatility is likely to increase.

Recommendations:

Short-term purchases of the euro today are possible on small TF. A more competent tactic is to refrain from trading until the end of the upward rollback, with the search at the end of the entry point to a short position.

Resistance zones:

- 1.1190 / 1.1220

Support zones:

- 1.1140 / 1.1110

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AUD/USD

Since April 17, the main trend vector "Aussie" is directed to the "south" of the chart. The wave is at the end of a larger bearish structure, hence the impulsive nature of the movement. The preliminary calculation gives a reference point of the upper limit of the target zone within the price figure. In the last section of May 7, the first 2 parts (A + B) were completed.

Forecast:

Today, the flat mood of the pair is most likely. "Sideways" is expected, but a short-term rise to the resistance zone is not excluded. Return to the main course of the pair can be expected at the end of the day or tomorrow.

Recommendations:

Due to the unpredictable scale of the rollback, purchases today are quite risky. The best solution would be to skip the rollback phase upwards and look for sale signals at its end.

Resistance zones:

- 0.6930 / 0.6960

Support zones:

- 0.6870 / 0.6840

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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