EUR / USD pair
From the end of March, the direction of the euro price movement was set by a downward wave. We can state its ending given various factors such as the pronounced corrective nature of the wave, the completeness of its structure, the achievement of the target zone and the presence of a potential reversal model. In the bullish wave of May 23, a correction is being formed in the last days.
Forecast:
In the first half of the day today, a downward motion vector of the pair is expected, right up to its completion. By the end of the day, the likelihood of a change in the rate and a repeated price rise is increased. The daily range of travel is limited by oncoming settlement zones.
Recommendations:
Traders should be cautious in selling the European currency today since the short-term decline. In the area of support, it is recommended to start tracking reversal signals to search for entry into long positions.
Resistance zones:
- 1.1220 / 1.1250
Support areas:
- 1.1170 / 1.1140
GBP / USD pair
The latest wave of trading for intraday traders starts from May 3rd. The wave completes a larger downward formation. On May 21, the final section began, which in turn, the first parts (A+B) were already formed. Since yesterday, the price rolled upward.
Forecast:
Over the next trading sessions, the current flat mood of the pound movement is expected to complete. Next, it is expected to turn and the price move down major. A breakthrough beyond the lower boundary of the support zone is unlikely today.
Recommendations:
There are no conditions for buying pounds today. It is recommended to wait for the completion of the ascending movements and look for an opportunity to enter short positions in this instrument at their end.
Resistance zones:
- 1.2700 / 1.2730
Support areas:
- 1.2630 / 1.2600
Explanations to the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). Each of these analyzes the last incomplete wave. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure and the dotted exhibits the expected movement.
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