Simplified wave analysis and forecast for EUR/USD, AUD/USD, GBP/JPY on January 20

EUR/USD

Analysis:

The upward wave that has dominated the euro market since March of last year has an impulse-like structure. The wave level of the movement exceeded the daily scale. The last section of the main wave counts down from November 4. In the structure, the counter correction section, in the form of a stretched plane, is close to completion. The upward movement of the last two days does not exceed the level of the pullback.

Forecast:

In the next trading session, the upward movement rate is expected to end. In the second half of the day, you can expect a reversal and a second decline to the support zone. When the exchange rate changes, an increase in volatility and a puncture of the upper limit of resistance are not excluded.

Potential reversal zones

Resistance:

- 1.2160/1.2190

Support:

- 1.2080/1.2050

Recommendations:

There are no conditions for buying the euro today. In the area of the calculated resistance, it is recommended to track the signals for selling the instrument.

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AUD/USD

Analysis:

As a result of the rise in the Australian dollar, the price reached the lower limit of the strong resistance zone of a large TF. In the last 2 weeks, the quotes have been lying in a sideways drift along the lower border, forming an intermediate correction.

Forecast:

Today, the flat mood of the movement is expected to continue. A general upward vector is more likely. In the European session, a short-term decline in the support area is not excluded.

Potential reversal zones

Resistance:

- 0.7750/0.7780

Support:

- 0.7690/0.7660

Recommendations:

Trading on the pair's market today is possible within the intraday with a reduced lot. Purchases of the instrument are more promising.

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GBP/JPY

Analysis:

The market for the pound'/yen currency pair is dominated by an upward trend. An incomplete wave of small scale originates on December 21. In the structure of the wave, the middle part (B) has ended. Two days ago, an ascending section with a reversal potential started. This may be the beginning of the final part (C).

Forecast:

In the first half of the day, the price is more likely to move sideways. A short-term decline to the support zone is not excluded. By the end of the day, it is expected to increase activity and increase the rate to the resistance zone.

Potential reversal zones

Resistance:

- 142.20/142.50

Support:

- 141.20/140.90

Recommendations:

There are no conditions for selling the pair on the pair's market. It is recommended to monitor all emerging signals for the purchase of the instrument.

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Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted line shows the expected movements.

Attention: The wave algorithm does not take into account the duration of the instrument movements in time!

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

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